NEW DELHI: Asia’s naphtha crack recouped some losses on Monday, but continued to trade at a discount against Brent, as supplies from the region’s top supplier Middle East declined.
The refining profit margin for naphtha traded at a discount of $82.08 a tonne, up $33.60 from Friday. Naphtha margins touched November 2008 lows last week because of oversupply concerns amid weak demand.
Refinitiv Oil Research assessed total naphtha exports into Asia for June at about 5.3 million tonnes, down from May’s revised total of 5.8 million tonnes.
Meanwhile, South Korea’s average daily shipments of petrochemical products plunged by 90% due to a nationwide strike by truckers.
Two petrochemical industry sources, who declined to be identified, told Reuters that although naphtha crackers are still running at previous rates, some companies may be forced to halt them as soon as later this week if the situation continues. Oil dropped about $2 a barrel on Monday as a flare-up in COVID-19 cases in Beijing dented hopes of a Chinese demand rebound, while worries about more interest rate hikes to control rampant inflation added further pressure.
Comments
Comments are closed for this article.