Naphtha margin rallies to fresh peak in steep backwardation

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Asia's naphtha refining margin surged to a fresh high of about $410 per metric ton over Brent crude on Friday in a steeply backwardated market as prompt supplies were severely crimped amid the war in the Middle East, traders and analysts said.The ongoing war has sent naphtha margins surging above $400 a ton from about $108 before the conflict started. (NAF-SIN-CRK)The backwardation between first-half May and first-half June prices also widened to a record $122 a ton. Meanwhile, Russia's Novatek is set to increase naphtha exports from its Ust-Luga complex in March to about 550,000 metric tons, from 360,000 tons in February, market sources said and LSEG data showed.Russia is the second-largest supplier of naphtha to Asia after the Middle East and accounts for about 14% of total naphtha imports into Asia. NEWS- South Korean authorities have received a restructuring plan for Yeochun NCC, a joint venture between Hanwha Solutions and DL Chemical, to be integrated with Lotte Chemical's Yeosu naphtha cracking centre to form a new consolidated entity, the industry ministry said.- Israel and Iran traded fresh attacks on Friday, a day after Tehran struck an Israeli oil refinery and after U.S. President Donald Trump warned Israel against further attacks on an Iranian offshore gas field shared with Qatar.- Surging oil prices in physical markets - the trading place for oil on ships, rail cars or in storage tanks - have outpaced the already dizzying increases in benchmark futures markets, as refiners and traders across Asia and Europe are snapping up whatever barrels they can secure to plug the enormous supply gap caused by the U.S.-Israeli war on Iran.SINGAPORE CASH DEALS No trades.PRICES CASHASIA CLOSEChangePrev CloseRICOSN Naphtha CFR Japan M1 ($/mt)1216.25-33.001249.25(NAF-1H-TYO)OSN Naphtha CFR Japan M2 ($/mt)1094.25-35.001129.25(NAF-2H-TYO)OSN Naphtha Diff ($/mt)122.002.00120.00(NAF-TYO-DIF)Naphtha Netback FOB Sing ($/bbl)133.14-3.67136.81(NAF-SIN)Naphtha-Brent Crack ($/mt)409.7016.72392.98(NAF-SIN-CRK)Gasoline 97 ($/bbl)161.2613.64147.62(GL97-SIN)Gasoline 95 ($/bbl)158.3216.62141.70(GL95-SIN)Gasoline 92 ($/bbl)145.007.50137.50(GL92-SIN)Gasoline crack ($/bbl)37.4614.1323.33(GL92-SIN-CRK)For a list of derivatives prices, including margins, please double click the RICs below.Brent M1(BRENTSGMc1)Naphtha CFR Japan M1(NACFRJPSWMc1)Naphtha CFR Japan M1/M2(NACFRJPSDMc1)N...

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