GASOLINE

The differentials for MR-size cargoes of gasoline on an FOB Northeast Asia went down. As demand in China was decreasing in the rainy season and inventories were piling up, refiners in the country were exporting extra volumes at home. China National Offshore Oil Co (CNOOC) sold an MR-size cargo of 92RON gasoline loading on Aug 28-29 at a discount of around 30cts/bbl to the quotations on an FOB basis.

NAPHTHA

The differential for naphtha cargoes on an FOB Middle East basis was at a premium in the range of $19.00-21.00/mt to Middle East quotations, down $4.50/mt on recent falls in the CFR Northeast Asia prices despite no new spot deals on an FOB Middle East basis. A trader saw that the differentials on an FOB Middle East basis were going down to a premium of around $20/mt to Middle East quotations, judging from present weakness in the CFR Japan prices.

MIDDLE DISTILLATES

As demand of jet fuel was also weak in Europe, some refiners in the region were considering exports to Asia. Compañía Española de Petróleos, S.A. (Cepsa) in Spain was looking for buyers of 60,000mt of jet fuel to be loaded from Ruwais refinery in Abu Dhabi at the end of August. Cepsa usually brings back term cargoes of jet fuel into Europe. However, due to weak demand of jet fuel in the region, the company was talking on the cargo in the Asian market.

FUEL OIL

The differential for MR-size cargoes of 0.5% sulfur fuel oil on an FOB South Korea basis hovered at a premium in the range of $55.00-65.00/mt to Singapore quotations. However, each South Korea oil company has been pulling up run rates at its refinery, so that supply of 0.5% sulfur fuel oil from South Korea was estimated to increase. At the same time, arbitrage cargoes from Europe to Asia were declining on the back of run cuts at European refineries, then market sentiments in Singapore where is the hub of Asia were converting to slightly upward tones. Due to this, the FOB Korea prices were supported, and bullish and bearish factors were offset on supply side.

Asia-products(Japanese) report sample

Products (English) report sample