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Naphtha crack climbs to highest since May 2022

Asia’s naphtha refining profit margin jumped to the highest level since May 2022 on Wednesday, buoyed by weakness in crude oil benchmarks.

The crack rose to by $16.80 to $73.42 a tonne over Brent crude, while the backwardation (NAF-TYO-DIF) in naphtha markets widened slightly by 25 cents to $2.25 per tonne.

“The ongoing upside (in naphtha prices) is crude driven,” an India-based trader said.

There were no deals for the light fuel in physical markets on Wednesday, while energy trader Unipec bought 50,000 barrels of the higher 95-octane gasoline at the Singapore window, market participants said.

Gasoline refining profit margin also jumped to more than four month high of $9.69 per barrel over Brent crude oil Thursday.

TENDERS

South Korea’s GS Caltex offered 300,000 barrels of February-loading gasoline in a tender that closed on Tuesday and was valid till the same day.

NEWS

– Trafigura has sold its 24.5% stake in Russia-backed Indian refiner Nayara Energy to a Rome-based energy investment group, following on from a deal on Monday where a group of firms backed by the trading company agreed to buy Lukoil’s Italian refinery.

– China’s CNOOC Ltd. has set its 2023 production target at a record 650 million to 660 million barrels of oil equivalent (boe), about 8% above last year’s goal.

SINGAPORE CASH DEALS

One gasoline trade, no naphtha deals.
Source: Reuters

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