NEW DELHI: Asia’s naphtha crack dropped on Wednesday as crude oil prices recouped losses after a US-led coordinated release of stocks from strategic reserves eased concerns over tightness in global supply.
The refining profit margin fell to $149.73 a tonne from $151.20 in the last session. In physical markets, BP purchased a first-half February loading cargo of naphtha for a second straight day.
Meanwhile, global prices of alternative cracker feedstock liquefied petroleum gas (LPG) weakened significantly over the past week, shedding over $70 per tonne (11%) versus their early-November assessments, according to consultancy JBC Energy.
“The immediate consequences of this price shock are becoming apparent in arbitrage spreads from the US to Europe and Asia, which have received a considerable boost and are now trending at year-to-date highs,” the consultancy said in a note.
On the other hand, the gasoline crack in the region inched higher to $7.83 a barrel from $7.75 in the previous session, after official data showed a jump of about 28% in India’s oil products imports.