Asia’s naphtha markets extended gains on Monday on the back of weakness in underlying prices, triggered by a slump in crude oil benchmarks, according to traders.
The crack rose by about $7 to $77.4 per metric ton over Brent crude and the second-half January naphtha price plunged by $13 to $662.50 per ton in backwardation structure.
Margins were also supported by increased spot purchases. At least one Middle East buyer was heard to have bought naphtha with a minimum of 70% paraffin content last week, market participants said.
Traders also kept an eye over Black sea exports where severe weather has affected oil loadings. Exports from the port of Novorossiisk resumed after a storm on Dec. 3, two sources familiar with the matter told Reuters on Monday.
In gasoline markets, the crack fell below $9 per barrel, but sentiment remained positive amid lower exports from China.
NEWS
Indian refiners have resumed Venezuelan oil purchases through intermediaries, with Reliance set to meet executives from state firm PDVSA next week to discuss direct sales following the easing of U.S. sanctions on the South American country, people familiar with the matter said.
– Oil prices extended declines on Monday, pressured by investor scepticism over the latest OPEC+ decision on supply cuts and uncertainty surrounding the global fuel demand, though the risk of supply disruptions from the Middle East conflict limited losses.
SINGAPORE CASH DEALS O/AS
Two gasoline trades, no naphtha deals.
Source: Reuters