NEW DELHI: Asia’s naphtha crack slumped for a fourth straight session on Tuesday, hitting the lowest level since September 2021 on petrochemical cracker production cuts.

The refining profit margin dropped to $121.98 a tonne, down $19.40 from the last session. Front-month naphtha prices eased $1.25 to $981.25 per tonne.

“Although outright prices of the light distillate feedstock have retreated from their recent record-breaking highs, petrochemical producers continue to struggle due to the negative margins, with some reportedly mulling further run cuts next month,” Refinitiv Oil Research said in a note.

On supply side, naphtha arrivals from Russia contracted sharply by 18% on-month to 600,000 tonnes, with volumes tumbling to their lowest level since November 2020, Refinitiv data showed.

Oil slipped below $114 a barrel on Tuesday, giving up some of the previous day’s 7% surge, as European Union members disagreed on a potential oil embargo on Russia, although persistent supply risks limited the decline.