Asia’s naphtha cracks rebounded on Wednesday after hitting their three-weeks-lows a day earlier as China, the world’s second-largest economy, showed a faster-than-expected growth, igniting hopes of stronger fuel and petrochemical demand.

Cracking margins for the feedstock rose by $5.8 to a discount of $10.65 per metric ton over Brent crude.

The gasoline crack, however, weakened to $2.11 a barrel over Brent crude.

China’s oil refinery throughput in September hit a record daily rate, data showed on Wednesday, up 12% from a year earlier as refiners increased run rates to cater for strong demand for transport fuel over the Golden Week holiday and improving manufacturing.

Japan’s official data showed that its refined product inventory surged last week from the prior week, led by a build-up of naphtha and gasoline stockpiles, despite a slowdown of crude throughput.

CHINA FUEL EXPORTS

China’s exports of key refined products diesel, gasoline and kerosene all fell month-on-month in September, data showed on Wednesday as export margins narrowed through the month and domestic fuel demand improved.

Its gasoline exports, totalling 1.09 million tons, were up 64.7% on last year’s low base of 660,000 tons, but down 21% on August’s figure.

SINGAPORE CASH DEALS

– One gasoline deal, no naphtha deal

NEWS

– Oil prices surged nearly 2% on Wednesday as tension escalated in the Middle East after hundreds were killed in a blast at a Gaza hospital, sparking concerns about potential oil supply disruptions from the region.

– U.S. crude oil and fuel stockpiles fell last week, according to market sources, citing American Petroleum Institute figures on Tuesday.

– President Vladimir Putin on Wednesday praised Chinese President Xi Jinping for the Belt and Road Initiative (BRI) and invited global investment in the Northern Sea route which he said could deepen trade between east and west.
Source: Reuters (Reporting by Muyu Xu; Editing by Sohini Goswami)