Asia’s naphtha refining profit margin jumped to the highest level since May 2022 on Wednesday, buoyed by weakness in crude oil benchmarks.
The crack rose to by $16.80 to $73.42 a tonne over Brent crude, while the backwardation (NAF-TYO-DIF) in naphtha markets widened slightly by 25 cents to $2.25 per tonne.
“The ongoing upside (in naphtha prices) is crude driven,” an India-based trader said.
There were no deals for the light fuel in physical markets on Wednesday, while energy trader Unipec bought 50,000 barrels of the higher 95-octane gasoline at the Singapore window, market participants said.
Gasoline refining profit margin also jumped to more than four month high of $9.69 per barrel over Brent crude oil Thursday.
TENDERS
South Korea’s GS Caltex offered 300,000 barrels of February-loading gasoline in a tender that closed on Tuesday and was valid till the same day.
NEWS
– Trafigura has sold its 24.5% stake in Russia-backed Indian refiner Nayara Energy to a Rome-based energy investment group, following on from a deal on Monday where a group of firms backed by the trading company agreed to buy Lukoil’s Italian refinery.
– China’s CNOOC Ltd. has set its 2023 production target at a record 650 million to 660 million barrels of oil equivalent (boe), about 8% above last year’s goal.
SINGAPORE CASH DEALS
One gasoline trade, no naphtha deals.
Source: Reuters