Asia’s Naphtha Prices Jump After Attack on Russian Fuel Tanker
- Margins reach highest since May 2022 in Monday trading
- Rising costs of the fuel will harm petrochemical profits
The oil tanker Marlin Luanda on fire after an attack in the Gulf of Aden.
Source: Indian Navy
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Refinery margins for processing naphtha — a vital feedstock for the petrochemical industry - jumped to the highest level since May 2022 in Asia as traders recalibrated risks surrounding Russian shipments following an attack on a tanker carrying the fuel from the country.
The strike on the Marlin Luanda, which was hauling a shipment of naphtha on behalf of trading giant Trafigura Group, signals a growing threat to Russia’s shipments through the Red Sea. The Iran-backed Houthis had previously signaled that Russian ships had nothing to fear.