Asia’s naphtha refining profit margin declined about 13% this week amid volatility in crude oil benchmarks and as trade tensions weighed on market sentiment.
The crack was down about $7 to $63 per metric ton over Brent crude on Thursday. Singapore markets closed early on account of a public holiday on Friday.
In purchases, two South Korea buyers emerged seeking naphtha cargoes for June this week, while an Indian private refiner offered 60,000 tons of gasoline, market participants said.
Meanwhile, India plans to end taxes on U.S. ethane and liquefied petroleum gas (LPG) imports under broader negotiations with Washington. LPG is used as an alternative feedstock at multi-feed crackers.
In the gasoline market, the refining profit margin declined to $7 per barrel over Brent crude despite a larger-than-expected fall in U.S. inventories. The crack was up about 3% this week.
U.S. gasoline stocks (USOILG=ECI) fell by 2 million barrels in the week to 234 million barrels, the EIA said, compared with analysts’ expectations in a Reuters poll for a 1.6 million-barrel draw.
Singapore light distillate stocks data will be released later on Thursday.
NEWS
– Oil prices extended gains on Thursday on the prospect of tighter supply after Washington imposed further sanctions to curb Iranian oil trade and as some OPEC producers pledged more output cuts to compensate for pumping above agreed quotas.
– Russia’s exports of Arctic oil to China are set to rise sharply in April after sellers offered wide discounts and shipment on non-sanctioned tankers to counter a U.S. embargo, analytics firm Vortexa and two Russian oil traders said.
SINGAPORE CASH DEALS
No trades.
Source: Reuters