Asia Naphtha/Gasoline-Naphtha margin falls; IOC, BPCL sell May naphtha

Asia’s naphtha markets fell on Thursday amid scanty trades at the deals window after a rise in crude oil benchmarks supported prices of the product.

The crack weakened by about $2 to $58.50 per metric ton over Brent crude in a backwardation price structure of $14.25 a ton. The price of second-half June naphtha rose by $12 to $689.25 per ton.

In tenders, Indian Oil Corp sold 35,000 tons of naphtha for loading during May 25-29 to energy trader BP, and Bharat Petroleum Corp sold a cargo loading during May 18-19 to energy trader Vitol, market participants said.

Meanwhile, Singapore light distillate inventories fell by 713,000 barrels to a two-week low of 15.107 million barrels in the week to May 8, Enterprise Singapore data showed.

NEWS

– India’s state-owned refiner Hindustan Petroleum Corporation (HPCL) reported a fall in its fourth-quarter profit on Thursday, hurt by higher raw material costs and selling fuel below market prices.

– Profit margins for diesel are slumping as new refineries boost supplies and as mild weather in the northern hemisphere and slow economic activity eat into demand, putting oil prices under further downward pressure.

SINGAPORE CASH DEALS O/AS

One gasoline trade, no naphtha deals.
Source: Reuters (Reporting by Mohi Narayan; Editing by Eileen Soreng)