Asia Naphtha/Gasoline-Naphtha margin rises after Fujairah stocks fall

Asia’s naphtha margin extended gains on Wednesday after inventories at the Fujairah commercial hub declined to a six-week low, although gains were capped due to limited spot activity, traders said.

The crack rose to $53.08 per metric ton over Brent crude, compared with $48.40 a day earlier in a steady backwardation of $6 per ton.

Meanwhile, South Korean petrochemical company LG Chem denied on Wednesday a media report saying it is considering merging its naphtha cracker business with rival Lotte Chemical.

Lotte Chemical also denied the report in a regulatory filing on Wednesday.

INVENTORIES

Light distillate stocks at the Fujairah trading hub decreased by 220,000 barrels to 7.310 million barrels, the lowest level since March 11, in the week to April 22, S&P Global Commodity Insights data showed.

U.S. gasoline inventories fell by 595,000 barrels, and distillates rose by 724,000 barrels, according to market sources citing American Petroleum Institute figures on Tuesday. API/S

NEWS

– U.S. refiners’ first-quarter profits are expected to fall from recent records, when earnings soared following Russia’s invasion of Ukraine in 2022, but overall will continue to draw support from disruptions in Russia and heavy refinery maintenance.

– The Organization of the Petroleum Exporting Countries (OPEC) is excited about a potential partnership with Namibia and ready to support the southern African country in its oil journey, OPEC Secretary General Haitham Al Ghais said on Wednesday.

SINGAPORE CASH DEALS O/AS

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Source: Reuters (Reporting by Mohi Narayan; Editing by Devika Syamnath)