Asia Naphtha/Gasoline-Naphtha gains, but current value reflects bleak market By Reuters

Asia Naphtha/Gasoline-Naphtha gains, but current value reflects bleak market

SINGAPORE, May 15 (Reuters) – Asia’s naphtha crack edged up 30 cents to $34.20 a tonne on Wednesday, after sinking to a three-month low in the previous session, but the current value still reflected a weak market, traders said.

– The average crack this year up to May 15 close is $50, down 40% from a year-ago period as higher supplies are expected.

– Reasons behind the ample supplies included weaker demand due to cracker maintenance season, recent petrochemical unit outage in Japan and high volumes of western cargoes from Europe and the Mediterranean flowing into Asia. O/ACRACKER O/NAPARB

– The monthly average of western cargoes arriving in Asia for January to May at 1.7 million tonnes are up 8% from the same period last year.

* NAPHTHA TENDERS: Kuwait Petroleum Corp (KPC) has sold 28,000 tonnes of light grade naphtha for June 12-13 loading at premiums in the low teens a tonne level to Middle East quotes on a free-on-board (FOB) basis.

– The buyer of the cargo could be an oil major but this could not be independently confirmed as the seller does not typically comment on its deals.

– It was unclear if the refiner sold any spot cargo for May loading but the current premium is sharply down from more than $20 a tonne Kuwait has garnered for a light grade cargo scheduled for April 27-28 loading. NAP/TENDA

* GASOLINE: Asia’s gasoline crack fell to a four-session low of $4.06 a barrel.

– Traders expect Chinese gasoline exports to be high in the coming months due to additional refining capacity.

* REFINERY NEWS: China’s throughput in April jumped by 15% from the year to 12.68 million barrels per day (bpd), matching the record daily levels racked up earlier this year due to growing production including Hengli Petrochemical’s new 400,000-barrels-per-day refinery. GASOLINE TENDERS: China’s Hongrun offered a 35,000-tonne gasoline cargo for end May loading from Longkou, Shandong, through a tender issued by its Singapore’s office.

– The tender closes on Thursday, same day as CNOOC’s sales tender for up to 15,000 tonnes of gasoline for June 1-5 loading from Donglian Terminal.

* CASH DEALS: Two naphtha deals and one on gasoline. O/AS LIGHT DISTILLATES

2019

CASH ($/T)

ASIA CLOSE

Change % Change Prev Close RIC OSN Naphtha CFR Japan M1

566.25

6.00

1.07

560.25 NAF-1H-TYO OSN Naphtha CFR Japan M2

566.25

7.50

1.34

558.75 NAF-2H-TYO OSN Naphtha Diff

0.00 -1.50 -100.00

1.50 NAF-TYO-DIF Naphtha Netback FOB Sing

60.97

0.67

1.11

60.30 NAF-SIN Naphtha Diff FOB Sing

-0.01 -0.16 -106.67

0.15 NAF-SIN-DIF Naphtha-Brent Crack

34.20

0.30

0.88

33.90 NAF-SIN-CRK Gasoline 97

78.10

0.10

0.13

78.00 GL97-SIN Gasoline 95

76.90

0.10

0.13

76.80 GL95-SIN Gasoline 92

75.00

0.35

0.47

74.65 GL92-SIN Gasoline crack

4.06 -0.41

-9.17

4.47 GL92-SIN-CRK

For a list of derivatives prices, including margins, please double

click the RICs below.

M1

BRENTSGMc1

Naphtha CFR Japan M1

NACFRJPSWMc1

Naphtha CFR Japan M1/M2

NACFRJPSDMc1

Naphtha CFR Japan M2

NACFRJPSWMc2

Naphtha Cracks M1

NACFRJPCKMc1

East-West Naphtha M1

NAPJPEWMc1

East-West Naphtha M2

NAPJPEWMc2

NWE Naphtha M1

NAPCNWEAMc1

NWE Naphtha M1/M2

NAPCNWEASMc1

NWE Naphtha M2

NAPCNWEAMc2

Crack NWE Naphtha-Brent M1

NAPCNWEACMc1

Crack NWE Naphtha-Brent M2

NAPCNWEACMc2

*Sing refers to Singapore

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