Asia’s naphtha refining profit margin continued to rebound this week, up 83% on spot demand, although the crack continued to trade in the negative territory due to lower prices of alternative feedstock liquefied petroleum gas (LPG).

The crack jumped by $7.40 to minus $4.23 a metric ton over Brent crude on Friday. The second-half August naphtha price traded $3 a ton higher than the following month. NAF-SIN-CRK

At the physical window, 150,000 barrels of benchmark-grade of gasoline changed hands and 25,000 tons of naphtha was traded.

The gasoline crack rose to $13.02 a barrel over Brent crude, compared with $12.45 a barrel a day earlier. The crack rose by 59% on week.

INVENTORIES ARA/

Gasoline stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub decreased 2.2% to 1.335 million tons in the week to Thursday, Insights Global data showed.

Naphtha stockpiles rose 13.2% to 266,000 tons amid slow blending activity and weak demand along the Rhine with naphtha prices staying elevated, Insights Global’s Bianca Stoiciu said, also pointing to high imports including, unusually, from West Africa.

NEWS

– Russia’s energy ministry said on Friday that there was no shortage of gasoline in the country, while production of fuel has been on the rise as planned maintenances at the refineries were wrapping up, Interfax news agency reported.

– Global benchmark Brent crude hovered above $81 a barrel on Friday, with bullish sentiment over U.S. demand bolstered by supply disruption in Libya and Nigeria.
Source: Reuters (Reporting by Mohi Narayan; Editing by Shweta Agarwal)