Asia’s naphtha margins hit a 10-month high on Thursday, even as no deals concluded at the end of the trade window.

The crack climbed by $5.80 to $120.48 per metric ton over Brent crude, its highest since Dec. 18, 2023.

The backwardation between second-half November and second-half December strengthened to $5.25.

In gasoline market, the crack improved after falling for seven consecutive sessions earlier in the week. The margins climbed to $3.68 per barrel over Brent crude.

INVENTORIES

Singapore light distillates stock rose by 851,000 barrels to a four-week high of 15.314 million barrels in the week ending Oct. 2, data from Enterprise Singapore showed.

U.S. gasoline stocks rose by 1.1 million barrels to 221 million barrels in the week ending Sept. 27, the Energy Information Administration (EIA) said.

Distillate stockpiles, fell by 1.3 million barrels in the week ending Sept. 27 to 122 million barrels.

NEWS

Oil prices rose as the prospect of a widening Middle East conflict that could disrupt crude oil flows from the region overshadowed a stronger global supply outlook.

Brent crude futures were up $1.02, or 1.38%, to $74.92 a barrel. U.S. West Texas Intermediate crude futures CLc1 were up $1.10, or 1.57%, to $71.20.

The oil industry and markets have had a muted reaction to growing conflict in the Middle East, a sign of just how well-stocked oil supplies are as U.S. output grows and OPEC+ prepares to lift production.

French oil major TotalEnergies TTEF.PA told investors on Wednesday it would focus on low-cost upstream production and signing oil-linked gas contracts to operate profitably and reward shareholders through 2030 as prices fall.

SINGAPORE CASH DEALS

Seven gasoline deals and one naphtha trade.
Source: Reuters (Reporting by Haridas)