According to Hellenic Shipping News article published on December 19, 2022, Asia’s naphtha refining profit margin bounced on Monday after shedding more than 50% last week, amid renewed activity in physical markets after a gap of two trading sessions.
The crack climbed to $30.40 a tonne, compared with $25.58 a tonne in the previous session. In spot markets, energy trader Total bought a first-half February cargo at $620 per tonne.
Analysts said markets are currently in the wait-and-watch mode as the February loading window approaches in the weeks ahead.
“If there is a definitive framework around a price cap for the sale of Russian oil products or, at least, naphtha, then trade frictions will likely ease and more cargoes could flow to the East, perhaps even directly to end-destinations,” energy consultancy FGE wrote in a note.
GASOLINE
The gasoline crack in the region rose 77 cents to $3.97 a barrels on Monday.
On supply side, China’s gasoline exports continued to surge in November, hitting their highest levels since May 2021, as refiners dashed to use up their 2022 export quotas and sell down rising inventory.
Gasoline exports were 1.49 million tonnes in November, compared to 1 million tonnes a month earlier and 810,000 tonnes a year earlier.
