Asia Naphtha/Gasoline-Naphtha market steadies but demand woes persist
Asia’s naphtha refining profit margin steadied on Wednesday after two straight days of declines, but sentiment remained bearish on persisting poor demand and ample supplies from the Arab Gulf, traders said.
The crack NAF-SIN-CRK traded $6.88 per metric ton over Brent crude, while the second-half November naphtha price weakened by $3.50 to $664.25 a ton.
“Cracks are down due to weak gasoline blending demand and weak cracking margins,” an India-based trading source said.
Despite scheduled maintenance loading from Arab Gulf is around 4 million tons for October, the source added.
The gasoline crack GL92-SIN-CRK, on the other hand, rose slightly to $4.10 a barrel over Brent crude.
India’s BPCL sold 35,000 tons of naphtha for Oct. 25-26 loading from Mumbai to energy trader Unipec, market sources said. Another Indian company, CPCL, sold 55,000 tons of naphtha for Oct. 29-30 loading from Chennai port to Trafigura.
– India’s September-loading diesel exports to Europe hit an unprecedented high as traders cashed in on arbitrage profits to the West, although the likelihood of such volumes continuing through October was unlikely, traders and analysts said.
– Russian wholesale diesel and gasoline prices declined on Wednesday after Moscow mostly lifted an export ban on the fuel last week.
SINGAPORE CASH DEALS O/AS
Source: Reuters (Reporting by Mohi Narayan; Editing by Varun H K)