Asia’s naphtha refining profit margin rose on Tuesday amid widespread expectation of lower supplies causing prompt tightness, traders said.

The crack rose by around $2 to $101.45 per metric ton over Brent crude. The backwardation between second-half January and second-half February naphtha prices was steady at $8 a ton.

Recurrent attacks on Russian energy infrastructure and a reluctance to buy sanctioned barrels have reduced flows to Asia this month, two Singapore-based traders said.

Meanwhile, Exxon Mobil, Saudi Aramco and Samref on Monday signed an agreement to evaluate a significant upgrade of the Samref refinery in Yanbu, and an expansion of the facility into an integrated petrochemical complex.

In gasoline market, the crack was little changed at $15.26 per barrel over Brent crude on Tuesday amid healthy window activity.

NEWS

– State energy major Saudi Aramco plans to start exporting the first condensate produced from the Jafurah gas plant in February, two sources with knowledge of the matter said.
– Singapore’s Aster Chemicals and Energy said on Tuesday it is investing $155 million to upgrade refining facilities at its Bukom refinery, which will increase its crude processing to 300,000 barrels per day.

SINGAPORE CASH DEALS

Two gasoline trades.
Source: Reuters