Asia’s naphtha margins improved on Monday, rallying from the previous week’s consecutive losses fueled by persistently poor downstream petrochemical margins, while demand remained dampened by reduced operating rates at ethylene crackers in the region.

The crack improved to $82.75 per metric ton over Brent crude from $81.68 on Friday.

Regional traders shared that naphtha demand is likely to pick up once two crackers in China come back online following their scheduled maintenance.

In tender, Mangalore’s MRPL was offering 30,000 metric tons of naphtha for the loading period of Dec. 7-8, the company website listed. The tender closes on Nov. 19.

In gasoline, the crack improved slightly to $4.70 per barrel over Brent crude.

Traders shared that they expect demand for gasoline to be steady in the coming month as the festive season is likely to witness travel.

NEWS

Oil prices edged higher on Monday after fighting between Russia and Ukraine intensified over the weekend, although concerns about fuel demand in China and forecasts of a global oil surplus weighed on markets.

China’s refined fuel exports fell to an 18-month low in October, customs data showed on Monday, as weak export margins continued to weigh on shipments. China’s total refined fuel exports in October fell to 3.96 million metric tons, according to the General Administration of Customs, the lowest since April 2023.

Sinopec Corp and Saudi Aramco have started constructing a refinery and petrochemical complex in southeast China’s Fujian province, marking another big investment in the country’s recent wave of petrochemicals expansions.
Source: Reuters (Reporting by Haridas; Editing by Shreya Biswas)