Asia’s gasoline cracks GL92-SIN-CRK were little changed at slightly above $14 a barrel, with prices on a slight uptrend and extending gains since the start of the week, though spot discussions slowed slightly in the open trading market.
The spotlight remained on how fast production issues in the U.S. will take to be resolved, several trade sources said.
Asia’s market will likely remain supported in the near term because of this since regional demand is still present for October, one northeast Asian refining source said.
Naphtha spot trading liquidity remained brisk for second-half November and early November spot lots, with buying interest from northeast Asia present in-line with earlier expectations.
Cracks NAF-SIN-CRK fell slightly to around $25 a ton, with crude futures rising at a quicker pace.
Premiums continued to hover at $50 to $60 per metric ton for heavy naphtha for early November deliveries, one source said.
Separately, some South Korean majors were in discussions for second-half October deliveries at premiums of $30 to $40 per metric ton for grade A cargoes, a separate source said.
Reforming margins, which represent the seller economics for blending naphtha into gasoline, remains economical above the $x a bbl level.
In southeast Asia, talks of a few more steam crackers looking to reduce run rates or already in the process of reducing run rates were evident, limiting naphtha’s overall upside movement.
NEWS
– Japan’s nationwide average retail price of regular gasoline fell by 1.7 yen to 184.8 yen ($1.30) per litre over the week to Sept. 11, helped by enhanced subsidies, the Ministry of Economy, Trade and Industry said on Wednesday.
– Russian oil production is seen declining by 1.5% to 527 million metric tons (10.54 million barrels per day) this year from 535 million in 2022, newspaper Izvestia reported on Wednesday, citing an interview with Energy Minister Nikolai Shulginov.
– Oman’s new Duqm oil refinery shipped out its first diesel cargo on Tuesday amid trial runs at the complex, the latest facility in the Middle East to commence operations, according to several trade sources and shiptracking data.
– Oil rose on Wednesday, firming near a 10-month peak reached during trading a day earlier, as the market balanced supply concerns over Libya output and OPEC+ cuts with global macroeconomic headwinds.
INVENTORIES
– Crude stocks rose by about 1.2 million barrels in the week ended Sept. 8, according to sources quoting American Petroleum Institute figures, who spoke on condition of anonymity. Gasoline inventories rose by about 4.2 million barrels, while distillate inventories rose by about 2.6 million barrels.
– Light distillates stocks at Fujairah Oil Industry Zone fell to around 5.8 million barrels for the week ended Sept. 11, according to industry information service S&P Global Commodity Insights.
SINGAPORE CASH DEALS O/AS
– No deals for gasoline
Source: Reuters (Reporting by Trixie Yap; Editing by Sonia Cheema)