Asia’s naphtha markets extended losses in contango structure on Monday, hitting the lowest since Sept. 7, as spot ethylene prices in northeast Asia tanked.

The crack plunged to minus $42.38 per metric ton, compared with minus $28.43 per metric ton on Friday. Naphtha margin was down about 98% last week. (NAF-SIN-CRK)

“The outlook for naphtha demand remains skewed to the downside as petrochemical producers across the region continue to grapple with negative olefins margins and are keeping operating rates at ethylene crackers below maximum capacity,” analysts at Refinitiv Oil Research said in a report.

The gasoline crack, on the other hand, rose to $15.55 a barrel on Monday on the back of robust demand fundamentals.

NEWS

– India’s Reliance Industries, operator of the world’s biggest refining complex, has resumed vessel operations at the port of Sikka in Jamnagar, Gujarat, industry sources said, as the coastline recovered from the impact of cyclone Biparjoy.

– Oil prices fell on Monday as questions over China’s economy outweighed OPEC+ output cuts and the seventh straight drop in the number of oil and gas rigs operating in the United States.
Source: Reuters