Asia’s naphtha refining margins gained on Thursday after stocks at Singapore commercial hub declined to a four-week low.

The crack rose to $67.48 per metric ton over Brent crude, from $62.88 a day earlier.

Meanwhile, fires broke out at two Russian fuel depots on Thursday after suspected drone attacks, officials said, the latest in a series of Ukrainian strikes against Russia’s oil industry.

Maxim Yegorov, governor of the Tambov region southeast of Moscow, said firefighters were tackling a blaze at the Platonovskaya fuel depot that broke out after an explosion probably caused by a drone. RIA news agency said a second reservoir had caught fire at the fuel depot.

On the gasoline side, the margin was steady near $4 per barrel over Brent crude as worries on slow demand and ample supplies persisted, traders said.

INVENTORIES

Singapore light distillate stocks fell by 591,000 barrels to 14.546 million barrels in the week to June 19, Enterprise Singapore data showed.

U.S. inventory data from the Energy Information Administration (EIA) will be released later on Thursday, a day later than usual because of the Juneteenth holiday on Wednesday.

NEWS

– Singapore will seek compensation for the costs incurred in an oil spill last week from the owners of the stationary vessel that discharged the oil, local media CNA reported.

– Brent oil futures were steady on Thursday, hovering slightly below seven-week highs as the market awaited U.S. inventory data.

– European Union countries agreed on a 14th package of sanctions against Russia over its war in Ukraine, diplomats said on Thursday, including their first restrictions on Russian gas.
Source: Reuters (Reporting by Mohi Narayan; Editing by Shailesh Kuber)