Asia’s naphtha refining profit margin lingered near one-year lows for a second straight session on Monday amid abundant supply and feedstock switch to cheaper liquefied petroleum gas, traders and analysts said.

The crack traded at about $55 per metric ton over Brent crude, compared to $52.90 in the previous session, in a narrow backwardation of 50 cents a ton.

Traders said the FEI-MOPJ has been trading on the lower end towards $70 per ton in recent weeks, incentivising use of cheaper propane over naphtha.

Meanwhile, Nayara Energy, an Indian refiner part-owned by Russia’s Rosneft and newly sanctioned by the European Union, has revised payment terms to sell a spot naphtha cargo in a tender issued on Monday, according to a document seen by Reuters.

In gasoline market, window activity was dismal, keeping the crack steady at $7.86 per barrel over Brent crude on Monday.

NEWS

– Oil prices were little changed on Monday, held in check by expectations that the latest European sanctions will have minimal impact on Russian oil supplies.
– China’s fuel oil imports recovered in June after a slump in May, while bunker fuel oil exports also climbed from the previous month, customs data showed on Sunday.

SINGAPORE CASH DEALS

One naphtha trade.
Source: Reuters