Asia Naphtha/Gasoline-Naphtha market gains amid crude volatility

Asia’s naphtha markets gained on Friday amid volatility in crude oil prices, but consumption from downstream units and spot market activity remained tepid.

The crack rose by about $2 to $45.96 per metric ton over Brent crude in a narrow backwardation of $3.25 per ton. Price of first-half June naphtha rose by $4 to $700.25 per ton.

In physical markets, there were no trades for naphtha, while a total of 200,000 barrels of May-loading 92-octane grade of gasoline changed hands.

Meanwhile, gasoline stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub dropped by over 13% to 982,000 tons during the week to Thursday, the lowest since early February, data from Dutch consultancy Insights Global showed.

Naphtha inventories climbed to 571,000 tons in the week to April 18, compared with 394,000 tons in the prior week, the data showed.

NEWS

– Oil slipped on Friday after prices spiked earlier on reports that Israel had attacked Iran as market fears of a major escalation to hostilities in the Mideast appeared to ease. O/R

– Chinese state energy giant Sinopec has completed a deal with Kazakh state-owned oil and gas firm KazMunayGas JSC (KMG) to take a 30% stake in a planned polyethylene project in Kazakhstan, Sinopec said on Friday.
Source: Reuters (Reporting by Mohi Narayan; Editing by Varun H K)