Asia’s naphtha crack lingered near eight-month highs on Friday and posted a weekly gain of about 63%, mirroring the strength in Northwest Europe margins, traders said, while sentiment remained jittery as EU ban on Russian oil products loomed.
The crack climbed $9.55 to $94.55 a tonne, the highest since May 2022, and the backwardation in naphtha markets widened by $1 to $10.25 per tonne.
In physical markets, a total of 50,000 tonnes of first-half April naphtha changed hands.
Meanwhile, naphtha stocks at the key European trading hub of Amsterdam-Rotterdam-Antwerp (ARA) dropped to 243,000 tonnes in the week to Feb. 2, the lowest since nearly two months, as markets head into the much anticipated sanctions on Russian refined products Feb. 5 onwards.
NEWS
– The European Union’s ban on imports of Russian refined oil products, including diesel and jet fuel, will disrupt global flows once it takes effect on Sunday and could hurt Moscow more than an embargo on crude oil.
– Taiwan’s state-owned refiner, CPC Corp, plans to shut its No. 11 crude distillation unit (CDU) in June for scheduled maintenance, company spokesperson Chang Ray-chung said on Friday.
SINGAPORE CASH DEALS
Two naphtha deals, no gasoline trades.
Source: Reuters