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Naphtha margin slips; gasoline crack gains steam

Asia’s naphtha refining profit margin declined on Monday in the absence of trade at the Singapore window for a fourth straight day.

The crack slipped by $1.07 to $73.70 a tonne, while the backwardation in naphtha markets widened by $3.75 to $7.25 per tonne.

On the demand side, China’s Panjin Haoye Chemical Co Ltd has shut down its entire oil refinery and petrochemical complex after an explosion on Sunday killed two people and left 12 missing, according to trade sources and a local consultancy.

The plant processed 460,000 tonnes of crude in December, or roughly 110,000 bpd, according to a China-based trade source.

Meanwhile, the gasoline crack inched higher by 22 cents to $11.75 a barrel amid optimism on Chinese demand ahead of Lunar Year holiday at the end of the week.

NEWS

– Oil prices held near this year’s highs on Monday as easing COVID-19 restrictions in China raised expectations for a demand recovery in the world’s top crude importer.

– China’s exports of refined oil products could start 2023 with a drop of 40% in January from December’s figure, as Lunar New Year travel demand boosts domestic consumption of transport fuels, trading sources and analysts said.
Source: Reuters

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