NEW DELHI, July 8 (Reuters) - Asia's gasoline refining profit margin eased on Tuesday on expectations of rising supplies from India and China amid sagging domestic demand this month, analysts and traders said.
The crack for the fuel traded at $9.23 per barrel over Brent crude, compared with $10.46 a day earlier. At the window, 200,000 barrels of benchmark-grade of gasoline was traded, market participants said.
China's local demand for transport fuel "continues to shrink as electricity displaces gasoline in the passenger vehicle fleet, especially in summer where electric cars' batteries are not adverse affected by cold temperatures, maximizing driving range," LSEG Research said in a note.
In the naphtha market, the crack was little changed at $72.73 per metric ton over Brent crude on Tuesday and the backwardation between second-half August and second-half September cargo narrowed by 25 cents to $7 a ton.
In contracts, Malaysia's Lotte Chemical Titan said on Monday that its Indonesian subsidiary has agreed to a 10-year ethylene supply deal worth around $3 billion with its downstream petrochemical producer, Lotte Chemical Indonesia Nusantara.
Asia's reforming margin, or gasoline's premium over naphtha, fell to the lowest level since June 30 to $14.68 a barrel.
NEWS
- India plans to source about 10% of its cooking gas imports from the U.S. beginning in 2026 as part of a broader effort to boost energy purchases to narrow its trade gap with Washington, four industry refining sources familiar with the matter said.
- Exxon Mobil signaled that lower oil and gas prices could cut its second-quarter earnings by about $1.5 billion from the previous quarter's level.
SINGAPORE CASH DEALS O/AS
One gasoline trade.
PRICES
CASH | ASIA CLOSE | Change | Prev Close | RIC |
OSN Naphtha CFR Japan M1 ($/mt) | 591.50 | 9.00 | 582.50 | NAF-1H-TYO |
OSN Naphtha CFR Japan M2 ($/mt) | 584.50 | 9.25 | 575.25 | NAF-2H-TYO |
OSN Naphtha Diff ($/mt) | 7.00 | -0.25 | 7.25 | NAF-TYO-DIF |
Naphtha Netback FOB Sing ($/bbl) | 63.72 | 1.00 | 62.72 | NAF-SIN |
Naphtha-Brent Crack ($/mt) | 72.73 | 1.65 | 71.08 | NAF-SIN-CRK |
Gasoline 97 ($/bbl) | 80.94 | -0.35 | 81.29 | GL97-SIN |
Gasoline 95 ($/bbl) | 79.80 | -0.35 | 80.15 | GL95-SIN |
Gasoline 92 ($/bbl) | 78.40 | -0.25 | 78.65 | GL92-SIN |
Gasoline crack ($/bbl) | 9.23 | -1.23 | 10.46 | GL92-SIN-CRK |
For a list of derivatives prices, including margins, please double click the RICs below. | ||||
Brent M1 | BRENTSGMc1 | |||
Naphtha CFR Japan M1 | NACFRJPSWMc1 | |||
Naphtha CFR Japan M1/M2 | NACFRJPSDMc1 | |||
Naphtha CFR Japan M2 | NACFRJPSWMc2 | |||
Naphtha Japan-Sing Netback M1 | NAPTC4SPDMc1 | |||
Naphtha Japan-Sing Netback M2 | NAPTC4SPDMc2 | |||
Naphtha FOB Sing M1 | NAFOBSGSWMc1 | |||
Naphtha FOB Sing M1/M2 | NAFOBSGSDMc1 | |||
Naphtha FOB Sing M2 | NAFOBSGSWMc2 | |||
Naphtha Cracks M1 | NACFRJPCKMc1 | |||
East-West Naphtha M1 | NAPJPEWMc1 | |||
East-West Naphtha M2 | NAPJPEWMc2 | |||
NWE Naphtha M1 | NAPCNWEAMc1 | |||
NWE Naphtha M1/M2 | NAPCNWEASMc1 | |||
NWE Naphtha M2 | NAPCNWEAMc2 | |||
Crack NWE Naphtha-Brent M1 | NAPCNWEACMc1 | |||
Crack NWE Naphtha-Brent M2 | NAPCNWEACMc2 | |||
*Sing refers to Singapore | ||||
(Reporting by Mohi Narayan; Editing by Sonia Cheema)
((Mohi.Narayan@thomsonreuters.com; https://twitter.com/_mohi_;))