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Asia Naphtha/Gasoline-Naphtha market ends the month in losses, flips into contango

Asia’s naphtha market ended the month in heavy losses amid subdued demand stemming from the poor downstream cracking margins and waning blending use in the gasoline complex, traders and analysts said.

Refining profit margin for naphtha was down over 300% in October. On Tuesday, the crack NAF-SIN-CRK rose by $4 to a discount of $17.95 a metric ton over Brent crude and the market flipped to the contango structure for the first time since June 26.

The first-half December naphtha price traded $3.50 per ton cheaper than the following month.

In physical markets, 25,000 tons of naphtha changed hands after a gap of five days. Energy trader AGT Asia bought first-half December cargo from Trafigura at $644 per ton, market participants said.

In gasoline market, the margin Gl92-SIN-CRK rose by about 65% in October on the back of firm import demand from Indonesia and Malaysia.

– India’s crude oil imports fell for a fourth month in September, to their lowest in a year, Petroleum Planning and Analysis Cell (PPAC) data showed on Tuesday.

– At least three Chinese companies including state giant China National Offshore Oil Company (CNOOC) are evaluating Shell’s Singapore assets and considering non-binding bids in coming weeks for the city-state’s oldest refinery, according to several sources familiar with the matter.

One naphtha trade, no gasoline deals.
Source: Reuters (Reporting by Mohi Narayan; Editing by Janane Venkatraman)

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