Asia’s naphtha markets extended gains on Thursday and the backwardation rose by $1 per metric ton on hopes of recovery in demand as cracker maintenance activity ends next month, analysts and traders said.

The refining profit margin for naphtha rose by about $4 to $81.45 per ton over Brent crude. The backwardation between first-half August and first-half September naphtha price widened to $12 a ton.

In tenders, India’s BPCL offered 35,000 tons of naphtha for early July loading from Mumbai, market sources said. The tender closes on Thursday. HMEL offered 10,500 tons of pygas for July 21-31 delivery in a tender that closes on Friday.

Nayara Energy was heard offering 60,000 tons of non-oxygenated gasoline for late July delivery in a tender that closes on June 27, sources added.

NEWS

Oil prices were largely steady on Thursday as a surprise build in U.S. stockpiles fuelled fears about slow demand from the world’s top oil consumer and countered supply concerns stoked by escalating conflict in the Middle East.

BPCL plans to shut its 120,000 barrels per day (bpd) crude unit and some secondary units at the 310,000 bpd Kochi refinery in southern India from mid-September, said Sanjay Khanna, the company’s head of refineries, at an industry event.

SINGAPORE CASH DEALS

Four gasoline trades, no naphtha deals.
Source: Reuters (Reporting by Mohi Narayan; Editing by Eileen Soreng)