Asia’s naphtha markets started 2024 in losses after crude oil benchmarks jumped over geopolitical tensions in the gulf of Aden, market players said.

The crack plunged by about $19 to $88.85 per metric ton over Brent crude and the second-half February naphtha price declined by about $14 to $674.75 per ton in backwardation structure.

At the Singapore trade window, there were no trades for naphtha. A flurry of deals for benchmark-grade of gasoline kept the cracks supported, market participants said.

Trader Unipec snapped up 200,000 barrels of 92-octane grade of transportation fuel, while Vitol bought 300,000 barrels of the same grade, they added.

The gasoline refining profit margin were steady at $9.88 per barrel over Brent crude.

NEWS

– China has issued its first refined fuel export quotas for 2024 totalling 19 million metric tons, a volume unchanged from last year’s and largely in line with market expectations, Chinese consultancies and multiple trading sources said.

– Oil prices jumped in the first session of the New Year, boosted by the chances of Middle East supply disruptions after a naval clash in the Red Sea, as well as hopes of strong holiday demand and an economic stimulus in China, the top importer of crude. O/R
Source: Reuters (Reporting by Mohi Narayan; Editing by Krishna Chandra Eluri)