Asia's naphtha timespread returns to positive zone

SINGAPORE: Asia's naphtha intermonth spread returned to backwardation for the first time in about 3-1/2 weeks on Monday, supported by recent demand and stronger gasoline margins.

Front-month first-half October open-specification naphtha price was $1.75 a tonne higher than the following month, reflecting stronger fundamentals. Backwardation refers to front-month prices being higher than the following months.

Asia's gasoline margin recovered to a two-session high of $2.18 a barrel after a dip on Friday. Supplies of petrol were seen sharply lower following run cuts by some refiners in Asia. Asian gasoline exports for August were seen at 3.8 million to 4.3 million tonnes, down from July's volume of about 4.7 million tonnes, data from Refinitiv Oil Research showed.