Asia’s naphtha refining profit margin plunged to an over one-year low on Friday after crude oil benchmarks gained as traders weighed the impact of fresh European Union sanctions on Russia.

The crack slipped to $52.90 a metric ton over Brent crude, the lowest level since May 15, 2024. The backwardation between first-half September and first-half October cargo narrowed further to just 50 cents a ton.

In purchases, Singapore’s PCS was heard to have bought 50,000 tons of first-half September naphtha at single-digit discount to MOPJ assessments, market sources said.

Meanwhile, Iraq’s SOMO was heard to have issued a term tender to sell up to 120,000 tons of naphtha per month between July and September, they said.

In gasoline market, the crack fell to $7.82 per barrel over Brent crude on Friday.

Meanwhile, the European Union on Friday agreed an 18th package of sanctions against Russia over its war in Ukraine. India’s Rosneft-backed Nayara refinery was sanctioned under this round. Traders said they are still assessing the impact.

NEWS

– Asian refiners are buying more Kazakhstan CPC Blend crude loading in August than July after falling European demand depressed prices, traders said, likely capping Asia demand for similar light-sour grades such as Abu Dhabi’s Murban.

– China’s exports of refined products, including diesel, gasoline, aviation fuel and marine fuel, fell 0.6% year-on-year to 5.34 million tons in June, according to customs data, though the figure marked the highest monthly total since June 2024.

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Source: Reuters