Asia’s naphtha refining margins declined to a near one-month low on Wednesday as inventories at global refining hubs climbed while crude oil prices strengthened.
The crack fell $4.25 to $93.82, its weakest level since Dec. 9.
Light distillate stocks at the Fujairah trading hub rose by 466,000 barrels to a near one-month high of 6.534 million barrels. The inventories last exceeded that level in the week of Dec. 16.
In the gasoline market, U.S. stockpiles were up 7.33 million barrels last week, according to market sources citing American Petroleum Institute Figures on Tuesday.
Gasoline cracking margins were unchanged at $7.21 as no deals for the benchmark octane grade took place by the end of the session.
NEWS
Oil prices rose on Wednesday as supplies from Russia and OPEC members tightened while data showing an unexpected increase in U.S. job openings pointed to expanding economic activity and consequent growth in oil demand.
OPEC oil output fell in December after two months of increases, a Reuters survey found, as a drop from the United Arab Emirates due to field maintenance and from Iran offset a hike from Nigeria and other gains elsewhere in the group.
Shell SHEL on Wednesday said its oil and gas trading results are expected to be significantly lower than in the previous three months.
Exxon Mobil XOM signalled on Tuesday that sharply lower oil refining profits and weakness across all its businesses would reduce its fourth-quarter earnings by about $1.75 billion from the prior quarter.
SINGAPORE CASH DEALS
No naphtha and gasoline trades for the day.
Source: Reuters