Asia’s naphtha refining profit margin was steady on Wednesday amid scanty deals at the window, and prospects of increased demand from China due to a U.S. clampdown on rival feedstocks propane and ethane kept the sentiment positive.
The crack traded at $73.28 per metric ton over Brent crude in a steady backwardation of $8 a ton between second-half July and second-half August cargoes.
Two South Korean buyers and two Chinese buyers sought naphtha for July this week, market participants said.
In the gasoline market, lower supplies continued to support the crack at about $10 per barrel over Brent crude.
INVENTORIES
Light distillate stocks at the Fujairah commercial hub rose by 76,000 barrels to a two-week high of 7.802 million barrels in the week to June 9, S&P Global Commodity Insights data showed.
NEWS
– U.S. ethane exports will fall by 24% in 2025, while production of the shale gas will decline by 4%, the U.S. Energy Information Administration said on Tuesday, after Washington requested U.S. exporters seek licenses to ship ethane to top buyer China.
– Oil prices edged up towards a seven-week high on Wednesday as markets assessed the outcome of U.S.-China trade talks, yet to be reviewed by U.S. President Donald Trump.
SINGAPORE CASH DEALS
One gasoline trade.
Source: Reuters