Asia’s naphtha margin extended gains from last week on Monday after crude oil prices fell, and buying activity improved in spot markets.
The crack rose by about $5 to $54.23 per metric ton over Brent crude. The backwardation between the first-half June and the first-half July naphtha prices widened to $10.25 a ton from $7.25 on Friday.
Traders said Korean and Japanese buyers have been active in spot markets, but premiums have fared in lower single digits.
On the supply front, Middle Eastern supply, which had earlier contracted on rising tension between Israel and Iran, saw a surge last week and recovered to its year-to-date average, analysts at LSEG Research noted.
NEWS
– Top oil exporter Saudi Arabia may raise prices for most of the crude grades it sells to Asia in June to their highest levels in five months after Middle East benchmarks strengthened this month, trade sources said on Monday.
– China’s top energy producer PetroChina posted a 4.7% rise in first-quarter net income on Monday helped by growth in natural gas and a recovery in fuel demand.
SINGAPORE CASH DEALS O/AS
Four gasoline deals, no naphtha trades.
Source: Reuters (Reporting by Mohi Narayan; Editing by Eileen Soreng)
