Asia’s naphtha refining profit margin edged higher on Monday after underlying prices fell in line with weakness in crude markets and the backwardation price structure between prompt and front months narrowed to zero.

The crack traded at $61.97 per metric ton over Brent crude, compared with $58.57 in the previous session.

Window activity remained thin for both naphtha and gasoline markets on Monday, market participants said.

In deals, China’s WEPEC was heard to have sold a cargo of benchmark-grade gasoline at a discount of around 50 cents on a free-on-board basis last week, they added.

The gasoline crack was steady on Monday at around $7 per barrel over Brent crude.

NEWS

– India’s crude oil imports in June fell 4.7% month-on-month to 20.32 million metric tons, the lowest level since February, government data showed on Monday.

– Mangalore Refinery and Petrochemicals Ltd has bought two Azeri Light crude cargoes from Trafigura for September delivery via a tender, trade sources said on Monday, a rare purchase of the grade for the Indian refiner.

– Saudi Arabia, the world’s biggest oil exporter, may hike crude oil prices for Asian buyers for the second month in a row, with September prices set to hit five-month highs on tight supply and robust demand, refining sources said.

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Source: Reuters