Asia’s naphtha refining profit margin plunged on Tuesday amid muted demand and speculation of run cuts at South Korean and Japanese buyers, traders said.

The crack slipped by about $10 to $92.95 per metric ton over Brent crude. The backwardation between first-half January and first-half February naphtha prices narrowed by around $2 to $7 a ton.

“Not much buying has happened this week and crude has also weakened quite a lot, with the market following that trend,” a Singapore-based trade source said.

Traders expect some buying in the coming weeks as crackers in northeast Asia come back from turnaround activity.

In the gasoline market, the crack declined to $13.81 per barrel over Brent crude on Tuesday from $14.54 per barrel a day earlier.

In tenders, Indonesia’s Pertamina was said to have sought five cargoes of prompt gasoline totaling up to 900,000 barrels for delivery between November 27 and 30, market participants said. The tenders are valid till Tuesday.

India’s MRPL sold 35,000 tons of 95-Octane grade of gasoline to a Chinese buyer at a premium of $2-$3 per barrel, an India-based source said.

NEWS

– Nigeria’s Dangote has tapped Honeywell to provide services and help double its refining capacity to 1.4 million barrels per day by 2028, in what is the clearest indication yet that its plans to become the world’s largest petroleum refinery are bearing fruit.

– India’s Russian oil imports are set to hit their lowest in at least three years in December, down from multi-month highs in November, as refiners turned to alternatives to avoid breaching Western sanctions, trade and refining sources said.
Source: Reuters