Asia Naphtha/Gasoline-Gasoline margins rise to two-week high; naphtha margins inch up

Asia’s gasoline margins climbed to a two-week high on Monday, as 850,000 barrels of the benchmark grade of gasoline exchanged hands at the closing window.

The crack climbed to $4.89 per barrel over Brent crude, its highest since Oct. 21.

Saudi Aramco emerged as the most active seller in the trade window, selling 450,000 barrels of the 92-octane gasoline.

In naphtha, the crack inched up by $0.04 to $115.93 per metric ton over Brent crude.

Regional traders said that they expect naphtha margins to climb further as regional crackers are coming back online after schedule maintenance.

NEWS

Oil prices rose more than 2% on Monday on a decision by OPEC+ to delay by a month plans to increase output, while the market braced for a crucial week that includes the U.S. presidential election and a key meeting in China.

Chinese refiners are expected to reduce fuel output for the rest of the year and maintain lower run rates in the first quarter of 2025 despite a seasonal demand uptick, as profit margins and fuel consumption in road transport remain weak.

South Korean refiners reported on Monday sharp losses in the third quarter from oil refining, but expect their margins to recover in the fourth quarter with peak winter demand and refinery run cuts in Asia.

SINGAPORE CASH DEALS

Fourteen gasoline deals and one naphtha trade.
Source: Reuters (Reporting by Haridas; Editing by Varun H K)