Asia’s gasoline cracks GL92-SIN-CRK posted weekly gains of over $1 a barrel, with worries of more unplanned production disruptions and heavy maintenance schedules in the Middle East region entering October being the key support drivers.

The U.S. is seeing a mixed bag of inventory levels for the motor fuel, given ongoing unexpected production losses, contributing to the upside.

“The list of planned and unplanned outages in PADD-3 (in the U.S) has been growing in recent weeks, with an apparent emphasis on FCC units,” said Sparta Commodities’ Philip Jones-Lux.

Firmer gasoil cracks indirectly provided a price floor for the gasoline market as well, one Europe-based analyst said, despite slowing demand after the summer peak driving season.

Blendstocks demand was upbeat through the week, with buying interest evident regionally and to the West, bringing the octane 95-92 spread back to a two-week high, two traders said.

Meanwhile, naphtha prices fluctuated in a narrower range from the previous week – despite posting weekly gains – on mixed trading activities and outlooks for entering October-November.
Prices were buoyed by strong reforming margins, with naphtha still considered cost effective for the gasoline blending pool, and some demand of heavy naphtha on the northeast Asia front.

Further gains in competing product liquified petroleum gas (LPG) ahead of the winter seasonal peak demand also supported prices.

However, poor production spreads from the downstream olefins sector limited the market’s upside, with some average naphtha cracker production rates in southeast Asia declining in these two weeks.

Cracks NAF-SIN-CRK ultimately fell at the end of the week to slightly below $10 a metric ton, given the stronger crude prices and rangebound fixed price discussions for the petrochemical feedstock.

INVENTORIES

– Gasoline inventories held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub declined by less than 1% to 1.415 million metric tons as exports continue to slow down, Dutch consultancy Insights Global Lars van Wageningen said.

NEWS

– China’s oil refinery throughput in August rose to a record, data showed on Friday, as processors in the world’s second-largest crude consumer kept run rates high to meet summer travel demand and capitalise on strengthening export margins.

– Oil prices rose on Friday and are set for a third weekly gain, as better-than-expected Chinese economic data and reports of record oil consumption bolstered the view that demand in the world’s second-largest crude consumer will continue to surge.

SINGAPORE CASH DEALS O/AS

– No deals
Source: Reuters (Reporting by Trixie Yap; Editing by Varun H K)