The Dubai crude cracking refining margin in Singapore rose to $6.44/barrel Wednesday, the highest level since February 1, as strength in refined product cracks, including a rebound in the naphtha crack, have supported margins, trading sources said Thursday.
The Dubai cracking margin was last higher on February 1 when it was assessed at $6.52/b. The Dubai cracking margin is calculated using a netback published by the consulting engineering firm of Turner, Mason & Co compared with the daily assessment of Dubai crude.
"Margins are excellent, I think the market has some good upside potential here, especially given the Brent/Dubai [spread]," a trader said. "Fuel and naphtha made a good rally."
The front-month naphtha/Dubai swap rebounded from minus $8.76/b on Tuesday to minus $7.51/b on Wednesday.
Another trader said that while margins were good, refiners have not hiked run rates any further, as they wait for the official selling prices for Middle Eastern sour crudes which will set the tone for the market in the coming days.
Platts publishes yields and netbacks produced by Platts Daily Yield, a joint venture between Platts and the consulting engineering firm of Turner, Mason & Co. All yields and netbacks in Platts Crude Oil Marketwire are produced using Platts product assessments and Turner & Mason's TMMS refinery modeling platform, configured to represent actual processing capabilities in specific regional centers based on a survey of operating refineries to be updated annually.
