Asia Naphtha/Gasoline-Naphtha margin posts weekly gain, gasoline falls sharply

Asia’s naphtha refining profit margin more than doubled this week amid volatility in crude oil benchmarks and lower Russian supplies to the Singapore trading hub.

The crack rose by $2.50 to $19.55 per metric ton over Brent crude on Friday and the first-half November naphtha price jumped by $10 to $720.50 a ton.

The gasoline crack, on the other hand, posted a weekly loss of about 39% amid worries of lower demand as U.S. driving season ends. The crack plunged below $10 per barrel on Friday.

There was negligible impact of Russian export ban on the gasoline complex as Asia is not a key recipient of the fuel from the country.

However, European suppliers to West Africa, which were replaced partially by Russia after the Western sanctions, could find some relief due to the ban, market participants said.

NEWS

– Russian wholesale gasoline Ai-92 grade prices fell by 9.7% to 55,892 roubles ($582) per metric ton on Friday, according to exchange data, following a government ban on fuel exports.

– Oil prices rose on Friday as renewed global supply concerns from Russia’s fuel export ban counteracted demand fears driven by macroeconomic headwinds and high interest rates.

SINGAPORE CASH DEALS O/AS

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