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Asia Naphtha/Gasoline-Naphtha refining margin falls 11% as LPG weighs on demand

Asia’s naphtha markets weakened by about 11% this week as liquefied petroleum gas (LPG), a cheaper alternative feedstock, weighed on cracking demand, traders said.

The refining profit margin for naphtha, also known as cracks, slipped to $56.10 per metric ton on Friday, compared with $58.50 per ton a day earlier.

On supply side, Russia’s exports of naphtha to Singapore are on track to rise to their highest level this year in May as Russian refineries recover from drone attacks, traders and analysts estimated, with the trend poised to continue as more capacity comes online.

Meanwhile, a cracker at Thailand’s Map Ta Phut Tank Terminal Company has stopped operations after a fire incident in a storage tank on Thursday, market sources said.

The company said in a statement fire was controlled on Thursday evening and investigation will be launched to assess the extent of damage.

NEWS

– The founder of collapsed oil trading firm Hin Leong Trading Pte Ltd was convicted by a Singapore court on Friday of cheating global bank HSBC and abetting forgery, local media reported.

– Global benchmark Brent hovered above $84 a barrel on Friday after data this week signalled growing demand in the U.S. and China, the world’s two largest crude users, while festering conflict in the Middle East added support
Source: Reuters (Reporting by Mohi Narayan; Editing by Varun H K)

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