Asia’s naphtha refining profit margin dipped on Monday and backwardation narrowed sharply after underlying prices rose in tandem with crude oil benchmarks.
The crack traded at $68.13 per metric ton over Brent crude, compared with $72.30 in the previous session. The backwardation between second-half August and second-half September cargo slimmed to $4 a ton from $7 on Friday.
Traders said naphtha demand from the gasoline-blending pool has been weaker than expected. In tenders, Lotte Chemical was heard seeking second-half August naphtha, market participants said.
In gasoline market, the refining profit margin was on a steady decline amid rising exports from India and China as local demand eased. The crack traded at $7.95 per barrel over Brent crude on Monday.
NEWS
– Oil prices rose on Monday and reached their highest level in three weeks, as investors eyed further U.S. sanctions on Russia that may affect global supplies, while higher oil imports by China also offered support.
– China’s crude oil imports rebounded in June, reaching their highest daily rate since August in 2023, data showed on Monday, after refineries increased operations and imports rose from Saudi Arabia and Iran, according to consultancies.
SINGAPORE CASH DEALS
One naphtha trade.
Source: Reuters