Asia Naphtha/Gasoline-Naphtha crack gains after crude falls
Asia’s naphtha markets inched higher on Monday after underlying benchmark prices fell in tandem with a decline in crude oil prices, although tepid demand continued to pressure sentiment.
The crack rose to $46.64 per metric ton over Brent crude, compared with $45.95 in the previous session in a narrow backwardation of $3.25 a ton.
Traders said a South Korean buyer snapped up two minimum-70% grade of naphtha cargoes last week for second-half May arrival, which supported the cracks.
“The market could see some upside risk from heightened tensions in the Middle East, a key naphtha supply region, following Israel’s attack on Iran last Friday,” analysts at LSEG Research said in a note.
NEWS
– Global benchmark Brent slipped on Monday though it remained above $86 a barrel as traders turned their focus back to inflation with tensions in the Middle East having so far left actual oil supplies unperturbed.
– European diesel futures spreads are flashing signs of oversupply and slow demand with the three-month contango LGOc1-LGOc4 trading on Monday at its widest since August 2021.
SINGAPORE CASH DEALS O/AS
One naphtha deal, no gasoline trades.
Source: Reuters (Reporting by Mohi Narayan; Editing by Mrigank Dhaniwala)