Asia’s naphtha margins rallied on Monday after falling for consecutive sessions in the previous week, boosted by stronger demand due to the restarting of several regional crackers.

The crack climbed by $4.77 to $109.43 per metric ton over Brent crude, from $104.65 on Friday.

Traders said that they remained optimistic that might distillate margins would strengthen through this year as demand is set to receive a push from China on the back of a number of new plants commencing operations towards the year end, improving market sentiments.

In gasoline, the crack slid to $5.69 per barrel over Brent crude, from $6.59 on Friday as low regional demand continued to put downward pressure on margins.

In tenders, Pakistan’s PSO was seeking 92-octane gasoline for the loading period of Dec. 6-13, the company website listed. The tender closes on Oct. 28.

NEWS

Oil prices were broadly steady on Monday, following a more than 7% drop last week on worries about demand in China, the world’s top oil importer, and an easing of concerns about potential supply disruptions in the Middle East.

Saudi Aramco is “fairly bullish” on China’s oil demand especially in light of the government’s stimulus package which aims to boost growth, the head of the state-owned oil giant said on Monday.

Indonesia’s new government aims to revive oil and gas production, with plans to cut regulations, reactivate idle wells and enhance output at producing assets in hopes of reversing a decades-long decline in output, officials have said.

SINGAPORE CASH DEALS O/AS

No gasoline or naphtha deals.
Source: Reuters (Reporting by Haridas; Editing by Janane Venkatraman)