Asia Naphtha/Gasoline-Naphtha cracks rise 19% this week amid Russian supply fears

Asia’s naphtha markets surged about 19% this week on the backdrop of supply disruption fears from Russia after two of its export-oriented oil facilities were under fire, traders said.
The crack rose by about $2 to $102.33 per metric ton over Brent crude on Friday.
Rosneft-owned Tuapse oil refinery in southern Russia has halted oil processing and output following Thursday’s fire, two industry sources told Reuters.
There are jitters in the market because Russia is a key exporter of naphtha to Asia, this kind of short-term disruption could cause prompt tightness, a naphtha trader said.
The gasoline crack also gained about 26% this week to $15.31 per barrel over Brent crude amid robust demand.
NEWS
– Valero Energy Corp, the second-largest U.S. oil refiner, on Thursday joined rivals in forecasting refinery maintenance will cut into U.S. gasoline inventories that have kept retail prices low.
– Asian refiners are pinning their 2024 jet fuel demand hopes on continued air travel recovery from China and Southeast Asia, with supply movements to be driven by output from a spate of new Middle East capacity, traders and analysts said.
SINGAPORE CASH DEALS O/AS
One gasoline trade, no naphtha trades.
Source: Reuters (Reporting by Mohi Narayan; Editing by Shweta Agarwal)