Asia’s naphtha prices plunged on Monday tracking the losses in crude oil benchmarks and the refining profit margin was down due to weak demand, analysts said.

The price for second-half February naphtha sank by $14.50 to $524 per ton. The price structure narrowed in backwardation by $2 to $2.75 a ton. The crack (NAF-SIN-CRK) was down by about $5 to $75.20 per ton over Brent crude.

Market sentiment is primarily driven by movement in crude prices, a Singapore-based analyst at a Japanese trading house said.

Oil prices were lower as ample global supplies outweighed worries over potential disruptions following the U.S. capture of Venezuelan President Nicolas Maduro in a bold weekend raid.

In refinery news, market sources said Indonesia’s Chandra Asri could shut its cracker this month for a planned turnaround.

The gasoline crack (GL92-SIN-CRK) held steady amid upbeat window activity at $10.56 per barrel over Brent crude on Monday.

NEWS

– Venezuela’s PDVSA has begun cutting crude production because it is running out of storage capacity due to an ongoing U.S. oil blockade that has reduced exports to zero, piling more pressure on an interim government trying to hang on to power in the face of U.S. threats of more military action.
– The United States could raise tariffs on India if New Delhi does not meet Washington’s demand to curb purchases of Russian oil, President Donald Trump said on Sunday, escalating pressure on the South Asian country as trade talks remain inconclusive.

SINGAPORE CASH DEALS

Two gasoline trades and one naphtha deal.
Source: Reuters