Firmer demand lifts light distillate margins

摘要

1. Strong regional demand supported light distillate margins but growing supplies weighed on the fuel oil market. 2. Naphtha refining margins rose to a near two-month high on firm demand (see graph). Formosa Petrochemical bought naphtha for second-half June delivery, the second time in a month that it has bought supplies for the same period. Expectations of lower arbitrage inflows to Asia-Pacific next month lifted demand.