Asian naphtha prices eased on Thursday, moving in line with falls in crude oil benchmarks as stockpiles at the region's major trading hub increased, attributed to higher supplies from Russia.
Benchmark front-month supplies for first-half August weakened by roughly $14, settling at $628.25 per metric ton. The nearby-contango structure showed a spread of $7.75 per ton. Against Brent crude, the refining margin for naphtha rose by about $8 to $83.38 per ton.
Market participants reported specific commercial activity that accompanied the price action. Energy trader AGTAsia sold 25,000 tons of naphtha to Vitol at the window. In addition, a Kuwaiti seller moved a prompt cargo at a discount through tender sales.
Official data released on Thursday showed that oil product inventories held in Singapore - a key Asian trading hub - bounced back to levels not seen in a month. That recovery followed 13-year lows recorded the prior week as stocks across product categories increased.
Oil markets were softer on Thursday, with prices retreating to levels last seen before the start of the Iran war. The move reflected market expectations that rising supply from the Middle East would outweigh concerns about demand.
The combination of rebuilding inventories in Singapore, reported commercial transactions and the prevailing contango prompted the decline in naphtha values even as refining margins widened against Brent. Traders noted the interplay between physical flows and crude benchmarks as influential in short-term pricing dynamics.
While the available information highlights recent trades and inventory shifts, the data released focuses on headline movements and does not provide further detail on regional demand patterns beyond the recovery in stocks. Market participants continued to monitor supply flows and crude price trends for further direction.
Market context:
- Front-month naphtha for first-half August: down about $14 to $628.25 per metric ton.
- Contango structure on nearby volumes: $7.75 per ton.
- Refining margin over Brent: up about $8 to $83.38 per ton.
- Reported trades: AGTAsia sold 25,000 tons to Vitol; a Kuwaiti seller sold a prompt cargo at a discount in tenders.
- Inventories in Singapore: rebounded to levels not seen in a month after 13-year lows recorded last week.