Asia's naphtha refining margin extended gains for a fourth session on Thursday, buoyed by persisting buying interest from China and weakness in crude oil benchmarks.
The crack rose by about $17 to $138.40 per metric ton over Brent crude. The backwardation between second-half August and second-half September naphtha widened to $9 a ton.
Chinese CSPC bought 80,000 tons of naphtha for second-half July and first-half August delivery at a discount to Mean of Platts Japan quotes, market participants said.
In the gasoline market, the crack eased slightly but traded firm at $23 per barrel over Brent crude on Thursday amid tight inventories at key trading hubs and expectations of lower exports from key supplier China.
NEWS
- Oil product stocks in Asia's key trading hub Singapore have eased following a rebound last week, led by a dip in inventories across the barrel, official data showed.
- China's Hengli Petrochemical, sanctioned by the U.S. for allegedly buying Iranian oil, has cancelled recent purchases of non-Iranian crude, five trade sources said, forcing the firm to cut refinery operations further as inventory runs low.
SINGAPORE CASH DEALS
Three gasoline trades.
PRICES
CASH ASIA CLOSE Change Prev Close RIC | OSN Naphtha CFR Japan M1 ($/mt) 671.50 7.00 664.50 (NAF-1H-TYO) | OSN Naphtha CFR Japan M2 ($/mt) 662.50 3.00 659.50 (NAF-2H-TYO) | OSN Naphtha Diff ($/mt) 9.00 4.00 5.00 (NAF-TYO-DIF) | Naphtha Netback FOB Sing ($/bbl) 72.61 0.78 71.83 (NAF-SIN) | Naphtha-Brent Crack ($/mt) 138.40 17.35 121.05 (NAF-SIN-CRK) | Gasoline 97 ($/bbl) 97.79 -2.70 100.49 (GL97-SIN) | Gasoline 95 ($/bbl) 96.28 -2.70 98.98 (GL95-SIN) | Gasoline 92 ($/bbl) 94.30 -2.70 97.00 (GL92-SIN) | Gasoline crack ($/bbl) 23.22 -1.32 24.54 (GL92-SIN-CRK) | For a list of derivatives prices, including margins, please double click the RICs below. | Brent M1 (BRENTSGMc1) | Naphtha CFR Japan M1 (NACFRJPSWMc1) | Naphtha CFR Japan M1/M2 (NACFRJPSDMc1) | Naphtha CFR Japan M2 (NACFRJPSWMc2) | Naphtha Japan-Sing Netback M1 (NAPTC4SPDMc1) | Naphtha Japan-Sing Netback M2 (NAPTC4SPDMc2) | Naphtha FOB Sing M1 (NAFOBSGSWMc1) | Naphtha FOB Sing M1/M2 (NAFOBSGSDMc1) | Naphtha FOB Sing M2 (NAFOBSGSWMc2) | Naphtha Cracks M1 (NACFRJPCKMc1) | East-West Naphtha M1 (NAPJPEWMc1) | East-West Naphtha M2 (NAPJPEWMc2) | NWE Naphtha M1 (NAPCNWEAMc1) | NWE Naphtha M1/M2 (NAPCNWEASMc1) | NWE Naphtha M2 (NAPCNWEAMc2) | Crack NWE Naphtha-Brent M1 (NAPCNWEACMc1) | Crack NWE Naphtha-Brent M2 (NAPCNWEACMc2) | *Sing refers to Singapore |