Asia’s naphtha refining profit margin jumped on Friday after crude oil benchmarks posted losses and window activity picked up pace.

The crack traded at $99.88 per metric ton over Brent crude, compared with $91.55 a day earlier. The backwardation between prompt and front months narrowed for a second straight session to $6 a ton.

Flat price for second-half October naphtha rose by $6 to $600.50 a ton, according to LSEG data.

In the gasoline market, the refining profit margin traded steadily firm at $12.35 a barrel due to increased pull from Australia on Singapore cargoes, trade sources said.

INVENTORIES

Naphtha stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to 578,000 tons in the week to September 4 from 584,000 in the prior week, Insights Global data showed.

U.S. gasoline stocks (USOILG=ECI) fell by 3.8 million barrels in the week to 218.5 million barrels, the EIA said, compared with expectations for a 1.1 million-barrel draw.

NEWS

– Oil extended its decline into a third session on Friday, heading for a weekly loss for the first time in three weeks as expectations grow of higher supply and a surprise increase in U.S. crude inventories added to demand concerns.

– Top Indian refiner Indian Oil Corp skipped the purchase of U.S. oil in its latest tender and instead bought 2 million barrels of West African and a million barrels of Middle Eastern grade, trade sources said.

SINGAPORE CASH DEALS

One naphtha trade.
Source: Reuters