Asia’s naphtha and gasoline markets were little changed on Wednesday amid thin window activity.

The gasoline refining profit margin traded at $8.54 a barrel over Brent crude and the naphtha crack stood at $71.55 per metric ton over Brent crude in a narrow backwardation of $4.50 a ton.

The naphtha margin is expected to gain steam in the fourth quarter this year as new cracking capacity comes online in China, traders and analysts said.

China’s naphtha imports will hit record levels this year as new plants and caution over U.S. propane and ethane purchases will drive demand and support refiners’ margins for the petrochemical feedstock.

ExxonMobil announced it had started operations at its 1.6 million tons-per-year Huizhou ethylene cracker on Tuesday.

NEWS

– Abu Dhabi National Oil Company said it plans to transfer its 24.9% shareholding in Austria’s OMV AG OMVV.VI to its XRG investment unit ahead of the establishment of a chemicals company combining existing OMV and ADNOC firms.

– Chinese state-owned refiners are ramping up output after completing maintenance to meet higher third-quarter fuel demand and to rebuild diesel and gasoline stocks which are at multi-year lows, traders and analysts said.

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Source: Reuters