Asia’s naphtha markets gained on Monday after crude prices declined, although activity remained tepid ahead of Chinese holidays, market players said.

The crack rose by about $9 to $80.58 per metric ton over Brent crude and the backwardation widened by $1 to $14 per ton.

“China has already stocked ahead of holidays, so we are expecting a lull in the market this week and the next,” a Singapore-based trader said.

Meanwhile, in gasoline markets, the crack was little changed at $14.51 per barrel over Brent crude on Monday. The crack has been trading in strong double digits on hopes of firm Chinese demand during the new year holidays, traders said.

NEWS

– Two Ukrainian attack drones struck the largest oil refinery in southern Russia on Saturday, a source in Kyiv told Reuters, detailing the latest in a series of long-range attacks on Russian oil facilities.

– Russia’s gasoline production edged down 2% in January from a year ago to 3.49 million metric tons amid widespread refinery outages, Kommersant daily reported on Monday, citing industry sources.

SINGAPORE CASH DEALS

Four gasoline trades, two naphtha deals.
Source: Reuters (Reporting by Mohi Narayan; Editing by Krishna Chandra Eluri)