Asia Naphtha/Gasoline-Naphtha crack tanks to November lows

Asia’s naphtha refining profit margin slipped to over a four-month low on Wednesday on worries over abundant supplies and rising crude oil prices, market participants said.

The crack fell by about $18 to $40.45 per metric ton over Brent crude, the lowest level since November last year, and the second-half May naphtha price declined to $706.75 per ton from $722 a day earlier.

March naphtha arrivals into Asia from the West jumped to a four-month high of 1.8-1.9 million tons, assessments from LSEG Research showed.

Meanwhile, Taiwan’s Formosa Petrochemical (FPCC)has restarted operations at the port at its Mailiao oil refinery after closing it as a precautionary measure following a powerful earthquake, a company spokesperson said on Wednesday.

NEWS

– Oil prices were stable on Wednesday as investors mulled supply risks stemming from ongoing Ukrainian attacks on Russian refineries and the potential for a widening of the Middle East conflict.

– Nigeria’s Dangote oil refinery started supplying petroleum products to the local market on Tuesday, a company executive and fuel marketing associations said, a major step in the country’s quest for energy independence.

SINGAPORE CASH DEALS

Two gasoline trades, no naphtha deals.
Source: Reuters (Reporting by Mohi Narayan; Editing by Ravi Prakash Kumar)