Asia’s second-half August and second-half September naphtha prices dipped below $700 per metric ton on Wednesday after Middle East inventories rose.

The refining profit margin for naphtha plunged to $64.60 per ton over Brent crude, compared with $73.93 a day earlier. The backwardation between second-half August and second-half September naphtha prices shrank to $8 from about $11 in the previous session.

In tenders, Indonesia’s Pertamina was heard seeking 22,000 tons for naphtha for delivery in September, market sources said. The company earlier sought 44,000 tons of naphtha for August delivery, Reuters record show.

Egypt’s EGPC sought 136,000 tons of 95-octange grade of motor fuel in spot purchases for August, the sources said.

The gasoline refining margin traded above $8 per barrel over Brent crude amid healthy demand and anticipation of lower Chinese supply.

INVENTORIES

Light distillate stocks at the Fujairah commercial hub rose by 601,000 barrels to 5.741 million barrels in the week to July 8, S&P Global Commodity Insights data showed.

NEWS

– Saudi Arabia raised a total of $12.35 billion from selling more shares in Aramco, after increasing the offering in the world’s most valuable oil company, a document seen by Reuters showed.
– Oil prices dipped on Wednesday as the impact from Hurricane Beryl dissipated and inflation data highlighted stubbornly weak consumer demand in top crude importer China. O/R

SINGAPORE CASH DEALS O/AS

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Source: Reuters (Reporting by Mohi Narayan; Editing by Vijay Kishore)