Asia’s naphtha refining profit margin fell by 14% this week amid fading war premiums after the conflict affecting the Strait of Hormuz began to cool off.

The crack declined to $63.20 per metric ton over Brent crude on Friday and the backwardation between first-half August and first-half September naphtha widened to $9.50 a ton.

Meanwhile, naphtha stocks at the ARA trading hub rose 8.4% to 646,000 tons in the week to June 26, the highest so far this year, as petrochemical end users favour using cheaper propane as feedstock, data from Insights Global showed.

The gasoline crack was steady near $10 a barrel over Brent crude on Friday amid a quiet window. Participants said there were no bids, offers or deals.

NEWS

– Russian Federal Anti-Monopoly Service (FAS) has proposed a complete gasoline exports ban to tackle high fuel prices, three industry sources told Reuters on Thursday.

– Oil prices rose on Friday though were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate.

– China’s Iranian oil imports surged in June as shipments accelerated before the recent conflict in the region and demand from independent refineries improved, analysts said.

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Source: Reuters