Asia’s naphtha markets gained some ground on Monday after plunging about 13% last week, as crude oil benchmarks trended down on bearish Chinese data.

The refining profit margin for naphtha rose by $4.50 to $63.15 per metric ton over Brent crude. The backwardation between second-half August and second-half September prices narrowed sharply to $3 a ton from about $6 on Friday.

Traders said healthy demand from the gasoline blending pool will also likely support the naphtha crack.

In tenders, India’s HMEL was heard offering gasoline for August, market sources said, while a Chinese petrochemical sought propane for the same month.

NEWS

– China’s refinery output fell 3.7% in June from a year earlier, official data showed on Monday, down for a third month amid planned maintenance, while lower processing margins and lacklustre fuel demand pushed independent plants to cut output.

– Oil held its ground on Monday as downward pressure from a stronger U.S. dollar and concern about demand in top importer China offset support from strong demand elsewhere and OPEC+ supply restraint.

– Nigerian state-owned oil firm NNPC shareholding in Dangote refinery has been whittled down to 7.2% from 20% after failing to pay the balance of funding owed, Aliko Dangote, the refinery’s owner told the BusinessDay newspaper.
Source: Reuters (Reporting by Mohi Narayan; Editing by Eileen Soreng)