NEW DELHI: Asia’s naphtha crack fell on Thursday, declining for a fourth consecutive session after Singapore inventories climbed to a near four-month high in the week to Jan. 5.
The refining profit margin slumped to $129.35 a tonne, lowest since Sept. 14, from $138.33 on Wednesday. Naphtha margins have declined over 21% this week.
The world’s top oil exporter, Saudi Arabia, has cut the official selling price (OSP) for all grades of crude it is selling to Asia in February by at least $1 a barrel, three sources with knowledge of the matter said.
The fall in crude costs could support margins for top refiners across Asia. However, the sources said the price cuts were smaller than industry expectations.
Meanwhile, the gasoline crack in the region also eased due to demand concerns arising from inventory build up.
Singapore’s onshore inventory of light distillates jumped 1.56 million barrels to 13.06 million barrels, according to data released on Thursday by Enterprise Singapore. The crack slipped to $11.23 a barrel, down 48 cents from the last close.
Oil prices lost ground on Thursday, falling from their highest levels in more than a month after US fuel stockpiles surged amid declining demand.