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Asia Naphtha/Gasoline-Gasoline crack drops to two-week low, naphtha crack hits 8-month high

Tuesday, 01 October 2024 | 00:00

Asia’s gasoline margins dipped to a two-week low on Monday without any deals being concluded.

The crack fell to $4.32 per barrel – its lowest since Sept. 17, from $4.92 on Friday.

Amongtenders, Mangalore’s MRPL was offering 75,000 metric tons of reformate for theOct. 18-19 loading period, according to its website. The tender closes on Oct. 1.

Pakistan’s PSO was seeking the benchmark grade of gasoline for Nov. 13-20 loading, its website showed. The tender closes on Oct. 7.

In naphtha, the crack rose by $4.75 to $112.65 per metric ton over Brent crude, hittingan eight-month high. The crack last hit $118.63 on Jan. 29.

The recent tightness in arbitrage supplies is expected to ease and could potentially weigh on market fundamentals.

Eastbound flows for September closed at a one-year low of 1.2-1.3 million metric tons, though the drop is expected to be short-lived, with the forecast for October arbitrage arrivals set to rebound sharply to 1.5-1.6 million metric tons, according to an LSEG report.

NEWS

Oil prices rose for a second consecutive session on Monday, with concerns escalating over potential supply disruptions in the Middle East. Brent crude futures LCOc1 for November delivery gained $1.12, up 1.56,% to $73.10 a barrel. The more-active contract for December delivery LCOc2 climbed $1.04, or 1.45%, to $72.58. U.S. West Texas Intermediate crude futures CLc1 advanced 93 cents, or 1.36%, to $69.11 a barrel.

About 24% of crude oil production and 18% of natural gas output in the U.S. Gulf of Mexico was shut in response to Hurricane Helene, the U.S. Bureau of Safety and Environmental Enforcement said on Friday.

SINGAPORE CASH DEALS

No deals concluded.
Source: Reuters (Reporting by Haridas; Editing by Sonia Cheema)

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