Asia’s naphtha refining profit margin was little changed on Monday but sentiment remained upbeat about demand going into the fourth quarter.

The crack traded at $98.18 per metric ton over Brent crude and the backwardation between prompt and front months stood at $6.75 a ton.

In gasoline market, a Chinese major was heard to have sold a medium-range cargo for October delivery last week, a Singapore-based fuel trader said.

The refining profit margin for transport fuel fell below $11 per barrel on Monday, but traders were positive about consumption in Asian markets while supplies were expected to be tight next three months.

In refinery news, Taiwan’s Formosa Petrochemical Corp reduced crude processing volume at its refinery after two secondary units were shut for maintenance, a company spokesperson said on Monday.

NEWS

– China’s Sinopec has begun construction to upgrade its integrated refining and petrochemical project in the oil- and gas-rich Xinjiang region, the world’s largest refiner by capacity said on Saturday.
– Oil prices gained on Monday supported by geopolitical tensions in Europe and the Middle East, although the prospect of more oil supply and concerns about the impact of trade tariffs on global fuel demand weighed.

SINGAPORE CASH DEALS

One gasoline and one naphtha trade.
Source: Reuters