NEW DELHI: Asia’s naphtha crack extended losses on Tuesday to hit May 2020 lows, as supplies from top exporter Middle East jumped amid dwindling demand from petrochemicals units.
The refining profit margin for naphtha dropped to $39.30 a tonne, down $15.82 from Monday. It was also weighed down by higher demand for the cheaper rival feedstock, liquefied petroleum gas (LPG).
Inflows from the Middle East are on course to hit the highest level since the beginning of the year at around 3.4 million metric tonnes, according to Refinitiv Oil Research data.
Total naphtha flows into Asia for May were notionally assessed at 5.7-5.8 million mt, up from April’s total of 5.2 million mt.
Oil fell by almost $1 on Tuesday as concerns over a possible recession and China’s COVID-19 curbs outweighed tight global supply and expectations of a pick-up in fuel demand with the US summer driving season.