Asia’s naphtha refining profit margin posted a weekly loss of about 74% amid poor demand fundamentals from the petrochemicals sector and rising supplies, traders said.

The crack fell by about $1 to $49.47 a metric ton over Brent crude in contango structure. Plummeting crude prices capped the downside but tepid demand from China continued to weigh on prices. The first-half August naphtha fell below $500 for the first time since January 2021 on Friday. NAF-SIN-CRK, NAF-1H-TYO

Meanwhile, Japan’s ethylene output fell about 12% to 406.4 tons year-on-year, data from the Japan Petrochemical Industry Association showed on Friday.

Naphtha stocks at the key trading hub of Amsterdam-Rotterdam-Antwerp (ARA) fell to 290,000 tons in the week to June 22, compared with 312,000 tons in the prior week, Insights Global data showed.

In a rare flow of trade, some cargoes were shipped to Finland from the ARA hub, the data showed.

TENDERS

India’s MRPL offered a total of 15,000 tons of benzene loading for delivery during July 17-21, the company said in a tender that closes on Friday.

The refiner also offered 25,000 tons of reformate for delivery during July 15-19 in a tender that also closes on Friday with same-day validity.

NEWS

– Indian state-run refiner BPCL is in talks with Rosneft to buy about 6 million metric tons (43.8 million barrels) of discounted Russian crude at a price based on the Dubai benchmark, according to three sources with direct knowledge of the matter.

– Oil dropped for a second day on Friday and was heading for a weekly decline, as a UK interest rate hike added to concern over economic growth that outweighed lower U.S. crude stocks and other signs of tighter supplies.

SINGAPORE CASH DEALS O/AS

Two gasoline trades, one naphtha deal.
Source: Reuters (Reporting by Mohi Narayan; editing by Eileen Soreng)