Asian naphtha market activity stayed brisk on the trading window on Tuesday, though firm negotiations offscreen were slightly minimal as buyers have yet to start more July purchases.
Refining margins for the petrochemical feedstock (NAF-SIN-CRK) were little changed at around $87.5 per metric ton
Demand for second-half July arrival cargoes should surface either end of the week or next week, two trade sources said.
Traders were hoping for more arbitrage supplies to resurface in July, after volumes were limited for June with some estimates.
Some sellers have started to check with us for our outright demand requirements for second-half July, two Asian buyers said.
Gasoline markets remained supported by firm prompt demand, with refining margins (GL92-SIN-CRK) remaining at close to almost $11 per barrel.
Recent strength has slightly been driven by demand in the Middle East, given some scheduled refinery maintenance since last month, with one trader drawing cargoes from Asia to fulfill requirements there.
Markets also received further support from some production hiccups in southeast Asia and overall sufficient regional demand in the front months.
Meanwhile, exports from one of key Asian suppliers, China, were estimated at 600,000-650,000 metric tons for June loading now, slightly lower from last month due to squeezed margins outside home.
INVENTORIES
– U.S. crude oil stockpiles likely fell last week, while distillate and gasoline inventories likely rose, a preliminary Reuters poll found on Monday.
NEWS
– Refiners across the globe are reaping unexpected profits from producing key fuels in recent weeks, offering an ailing sector respite before an anticipated weakening later this year, as plant closures have tightened fuel supply needed to meet peak summer demand.
– People took an estimated 657 million passenger trips during this year’s Dragon Boat Festival holiday, up 3% year-on-year, China’s state broadcaster reported, with the indicator closely watched as a barometer of Chinese consumer confidence.
SINGAPORE CASH DEALS
– One naphtha deal, no gasoline deals
Source: Reuters