Asian naphtha markets recorded a slight pick-up in activity on Monday, with several spot tenders resurfacing and a window deal emerging, despite the overall softening of prices.

There was some buying interest from Chinese importers for February cargoes.

China’s Sinochem sought for one 35,000 metric ton cargo for delivery February 1-10 via a tender that closes today with validity until tomorrow. The refiner currently has its Quanzhou site shut for maintenance, with a restart expected in end-January.

Meanwhile, India’s HPCL offered one 27,000-ton cargo for January 12-14 loading via a tender that also closes today.

The backwardated market structure eased for the first time in almost two weeks to $3.75 per ton from $6.25 per ton.

Refining margins for the petrochemical feedstock (NAF-SIN-CRK) were little changed at slightly above $78 a ton.

Gasoline activity on the trading window stayed upbeat, though offscreen discussions were considered fairly quiet.

Enquiries for blendstocks have slowed slightly towards the year end, one trade source said.

The octane-92 refining margins edged down slightly to around $10.2 a barrel. (GL92-SIN-CRK)

NEWS

– Iran has seized a foreign oil tanker near the Iranian island of Qeshm in the Gulf, saying it was carrying 4 million litres of smuggled fuel, state media reported on Friday.
– Serbia supports talks over the sale of a majority stake in the country’s sanctioned NIS oil company currently taking place between its Russian owners and Hungary’s MOL (MOL.BU), the Tanjug news agency reported on Thursday, citing Serbia’s energy minister.
– Oil prices rose on Monday as investors weighed the outcome of talks between the U.S. and Ukrainian presidents on a potential deal to end the war in Ukraine, as well as Middle East tensions that could disrupt supply.

SINGAPORE CASH DEALS

– One gasoline deal, one naphtha deal
Source: Reuters