Asia Naphtha/Gasoline-Naphtha margin rises, gasoline falls
Asia’s naphtha refining profit margin rose on Tuesday on hopes of slight recovery in demand as prices of alternative feedstocks butane and propane rose, analysts said.
The crack NAF-SIN-CRK rose by $6.57 to $32.95 per metric ton and markets flipped into backwardation structure. The second-half December naphtha price traded $1.25 higher than the following month.
The gasoline GL92-SIN-CRK crack fell below $13 per barrel although sentiment remained positive on expectation of tight supplies from China.
Singapore markets were closed on Monday on account of a public holiday.
Meanwhile, Bangladesh Petroleum Corp (BPC) sought 645,000 barrels of octane-95 gasoline for delivery between January and June 2024, a tender document on the country’s government website showed on Tuesday. The tender closes on Nov. 16, with validity of up to Jan. 31 next year.
– Oil prices edged higher on Tuesday after the International Energy Agency (IEA) raised its demand growth forecasts, adding to bullish sentiment from the previous day’s OPEC guidance.
– The International Energy Agency (IEA) on Tuesday raised its oil demand growth forecasts for this year and next despite an expected deceleration in economic growth in nearly all major economies.
SINGAPORE CASH DEALS O/AS
One naphtha deal, no gasoline trades.
Source: Reuters (Reporting by Mohi Narayan; Editing by Anil D’Silva)