Asia Naphtha/Gasoline-Naphtha crack rises, gasoline steady

Asia’s naphtha markets gained on Monday after crude prices declined, although activity remained tepid ahead of Chinese holidays, market players said.

The crack rose by about $9 to $80.58 per metric ton over Brent crude and the backwardation widened by $1 to $14 per ton.

“China has already stocked ahead of holidays, so we are expecting a lull in the market this week and the next,” a Singapore-based trader said.

Meanwhile, in gasoline markets, the crack was little changed at $14.51 per barrel over Brent crude on Monday. The crack has been trading in strong double digits on hopes of firm Chinese demand during the new year holidays, traders said.

NEWS

– Two Ukrainian attack drones struck the largest oil refinery in southern Russia on Saturday, a source in Kyiv told Reuters, detailing the latest in a series of long-range attacks on Russian oil facilities.

– Russia’s gasoline production edged down 2% in January from a year ago to 3.49 million metric tons amid widespread refinery outages, Kommersant daily reported on Monday, citing industry sources.

SINGAPORE CASH DEALS

Four gasoline trades, two naphtha deals.
Source: Reuters (Reporting by Mohi Narayan; Editing by Krishna Chandra Eluri)