Asia’s naphtha refining profit margin declined on Tuesday after crude oil benchmarks surged more than 1% on supply worries.

The crack plunged by about $6 to $82.62 per metric ton over Brent crude. The price for second-half February naphtha was little changed at $563.75 per ton in a backwardated market structure.

Traders said front-month naphtha prices were supported by firm buying interest from China amid strong rumours about a consumption tax levy on domestic naphtha.

In purchases, Lotte Chemical Indonesia surfaced in spot market, market participants said.

NEWS

– Two China-flagged supertankers that were sailing to Venezuela to pick up debt-paying crude cargoes made U-turns and were headed back to Asia, LSEG shipping data showed on Monday, a sign that the U.S.-blocked South American country might not be directly exporting oil to its main buyer any time soon.
– Oil prices extended gains on Tuesday as heightened concerns surrounding major producer Iran and potential supply disruptions overshadowed the prospect of increased crude supply from Venezuela.

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Source: Reuters