Asia’s gasoline refining profit margin extended gains on Thursday despite a rise in U.S. and Singapore inventories.
The crack rose to $11.15 per barrel over Brent crude, compared with $9.35 a day earlier. At the window, energy trader Unipec bought 50,000 barrels of the higher 95-octane grade of the fuel, market participants said.
In the naphtha market, the refining margin was steady at about $87 per metric ton over Brent crude on Thursday. In purchases, a Chinese buyer sought 50,000 tons of naphtha for its new cracker, market participants added.
In the near term, gasoline blending demand will support naphtha market, they said.
INVENTORIES
U.S. gasoline stocks rose by 816,000 barrels to 225.5 million barrels last week, the EIA said, compared with analysts’ expectations for a 520,000-barrel draw.
Singapore light distillate stocks rose to a four-week high of 13.554 million barrels in the week to May 21, Enterprise Singapore data showed.
NEWS
– Oil prices dropped by more than 1% on Thursday after a report that OPEC+ is discussing a production increase for July, stoking concerns that global supply could exceed demand growth.
– Venture Global VG.N is poised to become the largest U.S. liquefied natural gas company by next year if it proceeds with its CP2 project in Louisiana and continues overproduction at its existing plants, according to LSEG data and company statements.
Source: Reuters