Asia’s naphtha refining profit margin was steady on Monday amid a quiet window, although expectations of rising demand from China lingered.

The crack traded at about $71 per metric ton over Brent crude, and the backwardation between the second-half of August and second-half of September stood at $7.25 a ton.

“We expect upside to forward naphtha cracks as new steam crackers start up in Asia,” Energy Aspect said in its July 2025 outlook, adding that recovering Chinese PMI will also support demand.

In purchases, a Japanese buyer was heard seeking first-half August naphtha on a cost-and-freight basis, market participants said.

In the gasoline market, 200,000 barrels of benchmark-grade of gasoline and 50,000 barrels of the higher 95-octane grade of the fuel were traded, market participants said.

The margin for transport fuel in Asia traded at $10.46 per barrel over Brent crude on Monday.

Meanwhile, India’s sales of gasoline were 6.9% higher in June from a year earlier at 3.52 million metric tons, government data showed.

NEWS

– OPEC+ oil producers are set to approve another big output boost for September as they complete both the unwinding of voluntary production cuts by eight members and the United Arab Emirates’ move to a larger quota, five sources said.

– Shell expects quarterly earnings to be hit by weaker trading in its integrated gas division and losses at its chemicals and products operations, it said on Monday ahead of second-quarter results due on July 31.

– Saudi Arabia hiked August prices for Asian and European buyers by more than $1 a barrel as domestic crude demand is expected to rise, reducing exports, and consumption from China is likely to increase.

SINGAPORE CASH DEALS

Three gasoline trades.
Source: Reuters