Asia’s naphtha refining profit margin rose on Thursday and the price structure widened in backwardation by $1.75 even as supplies to Singapore trading hub increased.

The crack rose by about $4 to minus $11.63 a metric ton over Brent crude. The second-half August naphtha price traded $2.50 a ton higher than the following month at $592.50 per ton, compared with $580.75 in the previous session.

Russian naphtha arrivals to Singapore jumped to a record 235,056.91 tons in the week to Wednesday, government data showed, driving total weekly naphtha imports to the highest since the third week of January.

However, total Singapore stocks of light distillates fell by 539,000 barrels to more than a seven-month low of 13.041 million barrels in the week to July 12, Enterprise Singapore data showed.

The gasoline crack rose to $12.45 a barrel over Brent crude on Thursday, compared with $11.49 a barrel a day earlier.

NEWS

– Russian Urals oil jumped $2-$3 above the $60 per barrel Western price cap on Thursday, boosted by strengthening in international benchmark Brent and additional export cuts announced by Russia in August, Reuters calculations based on traders’ data showed.

– China’s crude oil imports in June jumped 45.3% on the year to the second-highest monthly figure on record, customs data showed on Thursday, with refiners building up inventories despite tepid domestic demand.

SINGAPORE CASH DEALS

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