NEW DELHI: Asia’s naphtha crack posted a weekly gain of more than 14%, although the refining profit margin continued to trade at a steep discount on oversupply concerns.
The crack rose to a discount of $66.43 a tonne, up from $98.75 on Thursday.
Naphtha stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area surged more than 70% in the week to Thursday, to their highest since late August 2021 at 371,000 tonnes, data from Dutch consultancy Insights Global showed.
Naphtha is a blending component in gasoline, but a shortage of high-octane additives in the region is making it difficult to make finished gasoline and hurting naphtha demand, Insights Global’s Lars van Wageningen said. Gasoline stocks fell about 5% to 1.16 million tonnes amid robust exports.
Meanwhile, the gasoline crack in the region posted a weekly loss of about 8% despite high demand and a global shortage of the motor fuel. Oil rose on Friday, supported by supply tightness and new sanctions on Iran, but prices were on track for a weekly decline amid interest rate hikes from major central banks that fuelled worries about a sharp economic slowdown.