Asia’s naphtha refining profit margin was steady on Tuesday amid a lack of trades at the window, but crack has fared strong due to tight supplies from Russia, traders said.

The crack traded at $99.70 per metric ton over Brent crude, down about $2 from a day earlier. The backwardation between prompt and forward month cargoes was stable at $7.50 a ton.
A Singapore-based petrochemical trader said naphtha supplies from Russia to Asia have nearly halved after attacks on Moscow’s energy infrastructure last month.

An official at an Indian naphtha importer said discount on Russian naphtha is stable and supplies to India dipped slightly for October.

“That was temporary, expecting supplies from Russia to resume to normal levels in November,” the official added.

NEWS

– U.S. tariffs are increasingly pressuring the already challenged petrochemicals sector, with China, the top producer, shifting its exports to Asia, industry executives said at a conference in Singapore on Tuesday.
– Oil extended gains on Tuesday, supported by the latest oil output hike from OPEC+ being smaller than anticipated, expectations that China will continue stockpiling oil and concerns over potential new sanctions on Russia.

SINGAPORE CASH DEALS

No trades.
Source: Reuters