SINGAPORE: Asia's naphtha crack slipped $1.43 to $52.40 a tonne on Monday, as ample supplies weighed on market sentiment, traders said.
Naphtha cracks have lost more than 60 percent of their value since their 2016 highs of $148.28 in the beginning of January, and margins remain pressured by weak fundamentals and excess supplies despite a contraction in eastbound arbitrage arrivals in recent months.
About 1 million tonnes of naphtha were placed on provisional bookings for July arrival in Asia, similar to volumes fixed for June.
These were down from a monthly average of 1.62 million tonnes for January to May arrivals, Reuters data showed.
GASOLINE UP
Asia's gasoline crack also started the week lower, down 19 cents at $6.42 a barrel, as excess supplies continued to drag, traders said.
Since the start of the year, gasoline margins have weakened considerably against diesel cracks as a result of a growing gasoline glut and slowing demand growth. During the first quarter of the year, gasoline margins were trading at an average $11.05 a barrel, while reaching year-to-date highs of $16.61 a barrel on Jan. 12.
In Europe, French CGT union workers have suspended a four-week strike at the Fos-Lavera oil terminal in southern France, a union official told Reuters on Sunday.
The protest over labour laws has caused delays in the loading and unloading of about 70 oil, LNG and chemical tankers at the oil terminal in the southern port of Marseille.
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- Trafigura bought a 25,000 barrel naphtha cargo for first-half September delivery at $430 a tonne.
- Sietco bought 50,000 barrels of 95-octane grade gasoline from Lukoil for July 5-9 loading at $58.80 a barrel.
- Gunvor sold 50,000 barrels of 95-octane grade gasoline to Vitol for July 11-15 loading at $59 a barrel.
- PTT bought 50,000 barrels of 92-octane grade gasoline from Petrochina for July 5-9 loading at $56.60 a barrel.
- P66 bought 50,000 barrels of 95-octane grade gasoline from Lukoil for July 5-9 loading at $58.80 a barrel.
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