Asia’s naphtha refining profit margin was up slightly on Monday, after crude oil benchmarks weakened, with several bids for second-half November and first-December cargoes.

The crack traded at $97.40 per ton over Brent crude, compared with $95.60 a ton in the previous session. The backwardation between prompt and front months stood at $9.50 per ton.

China’s Yulong Petrochemicals has achieved on-spec ethylene production at its No. 2 ethylene cracker in Yantai, according to a trade source.

In gasoline market, the crack was steady above $10 per barrel over Brent crude on Monday amid firm demand from Indonesia, market participants said.

On supply side, supplies from China were expected to remain low with at least one major left with limited batches to export, they added.

NEWS

– Oil prices dropped on Monday after Iraq’s Kurdistan region resumed crude oil exports via Turkey over the weekend, coupled with OPEC+ plans for another oil production hike in November, adding to global supplies.
– Saudi Arabia, the world’s biggest oil exporter, is expected to lift November crude oil prices for Asian buyers to track gains in Middle East benchmarks, although rising supplies would limit those increases, refining sources said on Monday.

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Source: Reuters