Asia’s naphtha refining profit margin gained on Monday after crude oil benchmarks declined on oil producers’ group OPEC+ decision to accelerate output hikes.
The crack climbed to $104.73 per metric ton over Brent crude, the highest level since March 28. Price for second-half June naphtha plunged by $10 to $554.50 per ton.
“The sudden crash in naphtha price helped to widen petrochemical margins and improve demand for the feedstock, but outlook is still clouded by the on-going trade war, which will weigh down on the upcoming U.S. consumer summer demand for Chinese goods,” LSEG Research said in a note.
The gasoline crack traded strongly at around $11 per barrel over Brent crude amid firm Indian demand.
In, Japan, ENEOS refinery was heard seeking gasoline cargo after some technical glitch at one of its units.
NEWS
– Oil prices fell more than 1% on Monday after OPEC+ decided over the weekend to further speed up oil output hikes, spurring concerns about more supply coming into a market clouded by an uncertain demand outlook.
– Goldman Sachs reduced its oil price forecast following decisions by the Organization of the Petroleum Exporting Countries and its allies, OPEC+, to accelerate oil output increases, the bank said in a note dated Sunday.
The bank now expects Brent crude to average $60 per barrel for the rest of 2025 and $56/bbl in 2026, down by $2 from its previous estimate.
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Source: Reuters