Asia’s naphtha backwardation between prompt and front months narrowed sharply to zero on Wednesday, after underlying prices gained in tandem with crude oil benchmarks.

The first-half November and December naphtha traded at $612 per metric ton, assessments from LSEG showed.

At the window, activity was thin, with lower bids for second-half November and first-half December cargoes, market participants said.

Meanwhile, Russian energy company Novatek has resumed gas condensate processing at the second unit of its Ust-Luga complex, which was damaged in an August 24 fire caused by a drone attack, three market sources told Reuters.

In gasoline market, the refining profit margin was down slightly at $10.70 per barrel over Brent crude, although balances remained tight for the next quarter, traders and analyst said.

INVENTORIES

Stocks of light distillates rose by 628,000 barrels to 6.676 million barrels in the week to September 22, according to industry information service S&P Global Commodity Insights.

NEWS

– Kremlin spokesman Dmitry Peskov, asked about the possible return of Exxon Mobil to Russia, said on Wednesday the U.S. energy major was not the only company keen to return to the country.

– U.S. oil major Chevron is only able to export about half the crude its joint ventures produce in Venezuela with the latest rules laid out by Washington, three sources close to the matter said.

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Source: Reuters