Asia’s naphtha margin rises as crude drops

NEW DELHI: Asia’s naphtha crack rose on Monday after falling more than 6% last week, as crude oil benchmarks dropped as much as $4 a barrel.

The refining margin for naphtha inched higher to $212.98 a barrel, up $1.88 from Friday close. The gasoline margin, on the other hand, traded steady over $17 a barrel amid strong demand from key consumers like India and tight supplies from China, market watchers said.

“Indian product demand has reached all-time high last month, coming in just under 5 million barrels per day (bpd), up a hefty 450,000 bpd from January,” consultancy JBC Energy said quoting official data in a note. The ramp-up took place across the entire products spectrum, with gasoline demand adding 100,000 bpd month-on-month, the consultancy added.

Sinopec’s Hainan refinery will shut down its whole plant for a planned maintenance, starting from March 15, according to statements from the local Yangpu city government and a contractor involved in the overhaul.