NEW DELHI: Asia’s naphtha refining profit margin tumbled to its lowest since June 2021 on Tuesday on concerns of slowing demand from petrochemical units. A rally in crude oil prices also brought the margin lower.

The crack slipped to $106.83 a tonne, down $7.57 from the last close. The inter-month spread widened by $1.50 in backwardation structure to $6.50 a tonne.

Most ethylene crackers in the region continue to operate at reduced rates of around 80%-90% in April amid fresh COVID-19 restrictions in China, Krystal Chung, analyst at Refinitiv Oil Research wrote in a note.

“That has hampered downstream derivative demand and logistics.”

Saudi Arabia, the world’s top oil exporter, raised crude prices for all regions, with those to Asia hitting all-time highs as disruption in Russian supplies support prices, according to a pricing document seen by Reuters on Monday.