Sept 23 (Reuters) - Asia's naphtha margins declined on Monday, even as supply is expected to bounce back as the maintenance of at least two regional crackers wraps up in the coming weeks.
The crack dropped by $1.80 to $95.90 per metric ton over Brent crude.
Traders said that naphtha demand is expected to get a boost with the restart of Formosa Petrochemical Corp’s 700,000 metric tons per year cracker in Mailiao, Taiwan, from the start of next month, and Japan's Mitsui Chemical's 455,000 metric tons per year Sakai-based cracker coming back online by early October.
However, supplies of the light distillate could also be squeezed by refinery run cuts prompted by weakening margins for other refined products across the barrel, an LSEG report said.
The gasoline crack inched down to $6.72 per barrel above Brent crude from $6.76 on Friday.
In tenders, Pakistan's PSO was seeking 92-octane gasoline and 95-octane gasoline, for the loading period of Nov. 11-13, the company website listed. The tender closes on Sept. 30.
NEWS
Oil prices rose slightly on Monday after last week's cut to U.S. interest rates and a dip in U.S. crude supply in the aftermath of Hurricane Francine countered weaker demand from top oil importer China. Brent crude futures for November edged up by 14 cents, or 0.19%, to $74.63 a barrel. U.S. crude futures for November were up 16 cents, or 0.23%, at $71.16.
India's monthly oil imports from Russia fell by 18.3% to about 1.7 million barrels per day in August from the previous month due to lower crude processing by some refiners, tanker data obtained from trade sources showed.
SINGAPORE CASH DEALS
One gasoline deal and no naphtha trade.
PRICES
CASH ASIA CLOSE Change Prev Close RIC
OSN Naphtha CFR Japan M1 654.50 -1.50 656.00
($/mt)
OSN Naphtha CFR Japan M2 650.75 -0.75 651.50
($/mt)
OSN Naphtha Diff ($/mt) 3.75 -0.75 4.50 <NAF-TYO-DIF
>
Naphtha Netback FOB Sing 70.72 -0.12 70.84
($/bbl)
Naphtha Diff FOB Sing 0.40 0.00 0.40 <NAF-SIN-DIF
>
Naphtha-Brent Crack 95.90 -1.80 97.70 <NAF-SIN-CRK
($/mt) >
Gasoline 97 ($/bbl) 86.14 0.00 86.14
Gasoline 95 ($/bbl) 85.70 -0.10 85.80
Gasoline 92 ($/bbl) 81.20 0.00 81.20
Gasoline crack ($/bbl) 6.72 -0.04 6.76 <GL92-SIN-CR
K>
For a list of derivatives prices, including margins, please double click the
RICs below.
Brent M1
Naphtha CFR Japan M1 <NACFRJPSWMc1
>
Naphtha CFR Japan M1/M2 <NACFRJPSDMc1
>
Naphtha CFR Japan M2 <NACFRJPSWMc2
>
Naphtha Japan-Sing <NAPTC4SPDMc1
Netback M1 >
Naphtha Japan-Sing <NAPTC4SPDMc2
Netback M2 >
Naphtha FOB Sing M1 <NAFOBSGSWMc1
>
Naphtha FOB Sing M1/M2 <NAFOBSGSDMc1
>
Naphtha FOB Sing M2 <NAFOBSGSWMc2
>
Naphtha Cracks M1 <NACFRJPCKMc1
>
East-West Naphtha M1
East-West Naphtha M2
NWE Naphtha M1
NWE Naphtha M1/M2 <NAPCNWEASMc1
>
NWE Naphtha M2
Crack NWE Naphtha-Brent <NAPCNWEACMc1
M1 >
Crack NWE Naphtha-Brent <NAPCNWEACMc2
M2 >
*Sing refers to
Singapore
(Reporting by Haridas; Editing by Eileen Soreng)
((Haridas.X@thomsonreuters.com;))
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