GASOLINE

The differential for MR-size cargoes of 92RON gasoline on an FOB Northeast Asia basis rose. Purchases by traders were increasing on expectations that demand would pick up. Lower freight rates also pushed up the market. On Wednesday, West Pacific Petroleum Co Dalian (WEPEC) in China sold an MR-size cargo of 92RON gasoline loading on June 21-23 from Dalian at a discount of $1.40/bbl to Singapore quotations on an FOB basis. On the same day, China National Offshore Oil Co also sold an MR-size cargo of 92RON gasoline loading on Jun 16-17 at a discount of $1.30/bbl to the quotations on an FOB basis.

NAPHTHA

In Northeast Asia, a trader in the region said that prices for open-spec naphtha were at a premium of around $3.00/mt to Japan quotations on a CFR Japan basis. As supply was getting tight due to production cuts at refineries, movements to procure naphtha that was running short stayed firm. Lockdown had been lifted in cities in Europe, the US and Asia one after another. As economic activities were being resumed, demand for gasoline was recovering. That could become a bullish factor for naphtha prices.

MIDDLE DISTILLATES

The differential for MR-size cargoes of 0.05% sulfur gasoil on an FOB South Korea basis swelled on expectations that slack supply/demand fundamentals could ease. A market source said that some traders seemed to be keen on procurement of 0.05% sulfur gasoil to be brought into Vietnam or to be used as feedstock of bunker fuel. On the other hand, some refiners in South Korea kept the production cuts at their refineries, so that the number of spot cargoes was limited. It was pointed out that a cargo from South Korea could be traded at a discount of around $3.00/bbl to Singapore quotations on an FOB basis.

FUEL OIL

The differential for MR-size cargoes of 0.5% sulfur fuel oil on an FOB South Korea basis was slightly up. S-Oil Co was scheduled to shut down the No.3 residue hydrodesulfurization unit and the No.2 residue fluid catalytic cracker both at its Onsan refiner from early June to early July. After the maintenance activities, the capacity of 0.5% sulfur fuel oil supply of the company would be extended to 200,000mt per month from June onward. Meanwhile, CPC Co in Taiwan was informed to have sold one cargo of 40,000mt 0.5% sulfur fuel oil loading in June at a discount of low $10'S/mt to Singapore quotations.

Asia-products(Japanese) report sample

Products (English) report sample