GASOLINE

The differentials for MR-size cargoes of gasoline on an FOB Northeast Asia basis went down. As the outbreak of COVID-19 continued, demand of gasoline in Southeast Asia countries was declining, and procurement of import cargoes was por. In addition, higher freight rates pushed down the differentials.

NAPHTHA

In the Northeast Asia spot market, Hanwha Total in South Korea bought full range naphtha to be delivered in the first half of June at a discount in the low teen. Although the volume was unknown, an end-user in Northeast Asia said that the differential was weakening as that of heavy grade or those for aromatics including gasoline or paraxylene were also declining. The source added that prices for naphtha were different depending on trading timing or volumes. However, it was possible that prices for naphtha to be delivered in Northeast Asia were expected to increasing in part due to higher freight rates.

MIDDLE DISTILLATES

The differentials for MR-size cargoes of 0.001% sulfur gasoil on an FOB Northeast Asia basis were unchanged. Talks shifted to cargoes loading in June. Refiners in Northeast Asia had yet to fix export schedules in the month, so that talks on spot cargoes were not heard in the market. On the other hand, traders stayed in a wait-and-see stance due to sluggish demand. In the meantime, oil companies in India kept exports of 0.001% sulfur gasoil due to declining demand at home on the back of the outbreak of COVID-19.

FUEL OIL

The differential for MR-size cargoes of 0.5% sulfur fuel oil on an FOB South Korea basis remained at a premium in the range of $25.00-35.00/mt to Singapore quotations. In South Korea, Hyundai Oilbank reported cut the operation rates at its refinery by 30% including regular maintenance of the residual fluid catalytic cracker, while S-Oil Co kept the operation rates of its refinery high to process crude oil from its shareholder Saudi Aramco.

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