Asia’s naphtha refining profit margin declined on the first trading day of the New Year, and the contango structure in markets narrowed by $1.50 per tonne.

The crack slipped to $14.20 a tonne on Tuesday after crude oil prices rose, compared with $21.13 a tonne on Friday. The front-month second-half February naphtha traded $2.50 a tonne lower than the following month.

Singapore markets were closed on Monday on account of a public holiday for the New Year.

In physical markets, trade remained tepid for naphtha, while in gasoline markets, energy trader Gunvor purchased 150,000 barrels of the benchmark grade of motor fuel, market participants said.

The gasoline crack rose to $9.16 a barrel from $8.45 in the previous session.

NEWS

– India has raised its windfall tax on crude oil to 2,100 rupees ($25.38) per tonne from 1,700 rupees ($20.55), effective on Tuesday, according to a government order dated Jan. 2.

SINGAPORE CASH DEALS

Two gasoline deals, no naphtha trades.
Source: Reuters