Naphtha spot buying stays brisk; gasoline firms

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Asia's naphtha market activity stayed upbeat as spot buyers were still looking to cover their regular requirements, though supplies remained sufficient.Buying interest from northeast Asia trickled in, in line with earlier expectations, as some users still had to cover their regular requirements.Refining margins clawed back earlier losses, climbing back to nearly $78 per metric ton. (NAF-SIN-CRK)Taiwan's Formosa Petchem sought for a 30,000-ton cargo delivering in end-July to early August via a tender that closes tomorrow, while South Korea's Lotte Chemical sought for second-half July deliveries to either Yeosu or Daesan.South Korea's Hanwha Total bought some H2 July deliveries at single digit premiums, traders said.Offers for Middle East-origin barrels were also in the market for prompt shipment, with discussions ongoing since last week, though it remains unclear if any cargoes were sold yet.On the gasoline front, cracks for the octane-92 grade extended gains, hitting almost $25 a barrel.Front-month markets should remain firm in the near-term, though traders stayed cautious on forward market performance with the swaps backwardation structure remaining at $5 a barrel.INVENTORIES- U.S. crude oil inventories fell last week for an eighth consecutive week, according to market sources citing data from the American Petroleum Institute released on Tuesday, while gasoline stocks also declined.- Stocks for refined oil products at the Fujairah Oil Industry Zone in the United Arab Emirates edged up week-on-week, but continued to hover near record lows, data showed on Wednesday, as the Iran war disrupted energy supplies in the region.NEWS- U.S. Energy Secretary Chris Wright said on Tuesday that ship traffic in the Gulf and oil exports through the Strait of Hormuz are rising even as Washington and Tehran struggle to reach a deal on ending their more than three-month-old war.- China has issued its second batch of fuel export quotas for this year, totalling 18 million metric tons, with overall levels largely steady year-on-year despite existing export restrictions, four trade sources said.SINGAPORE CASH DEALS- One naphtha deal, no gasoline dealPRICESCASHASIA CLOSEChangePrev CloseRICOSN Naphtha CFR Japan M1 ($/mt)767.7519.00748.75(NAF-1H-TYO)OSN Naphtha CFR Japan M2 ($/mt)764.0019.50744.50(NAF-2H-TYO)OSN Naphtha Diff ($/mt)3.75-0.504.25(NAF-TYO-DIF)Naphtha Netback FOB Sing...

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