News Search

News Search

Search Period

  1.  / 
  2.  / 
  3.    
  4.  / 
  5.  / 
  6.    

Weekly Summary

Products: Jun 7-11: FOB NEA 0.001%S gasoil is up on declines in cargoes from China

GASOLINE

The differential for MR-size cargoes of 92RON gasoline on an FOB China basis was unchanged. Talks on spot cargoes lacked the momentum without any offers for cargoes loading in July. As the Chinese government had yet to grand the third export quota of oil products this year, oil companies in the country did not seem to be making moves to sell cargoes loading in July. In Northeast Asia, Formosa Petrochemicals Co (FPCC) in Taiwan conducted a term sell tender of 93RON gasoline from July to December loading. Although details were unknown, some pointed out that the deal could take place at a premium in the range of $0.50-1.00/bbl to Singapore quotations on an FOB basis. On the demand side, a refiner in Japan was possibly going to import an MR-size cargo of 91RON gasoline loading in July onwards due to a lack of gasoline supply amid refineries' troubles. Another refiner earlier made moves to buy gasoline due to a trouble at its refinery.

 

NAPHTHA

A Northeast Asian buyer viewed that CFR Japan prices for naphtha were slightly receding, judging from the recent deal levels. As bearish factors, there were increases in arbitrage cargoes from the US and supply surplus for cargoes loading from the Middle East as Abu Dhabi National Oil Company (ADNOC). In terms of purchases for open-spec naphtha and paraffinic naphtha as paraffine content at 80% for second-half July delivery by Maruzen Petrochemical, the seller for one of the cargoes was ADNOC Global Trading (AGT) as the trading firm owned by ADNOC. It was the first deal by AGT to supply to Chiba. Further, the company was going to discuss the term contract based on the CFR basis with Northeast Asian end-users which seek during June.

 

MIDDLE DISTILLATES

The differential for MR-size cargoes of 0.001% sulfur gasoil on an FOB Northeat Asia basis was up. Prices for 0.001% sulfur gasoil stayed firm on the back of declining cargoes from China. In addition, some pointed out that recovery in demand in Australia or Southeast Asia was becoming a bullish factor for the market. In Taiwan, CPC Co sold two cargoes loading in early July and late July both at a discount of around 25cts/bbl to Singapore quotations on an FOB basis. In Japan, ENEOS reportedly sold a cargo loading in July at a discount of around 40cts/bbl to the quotations on an FOB basis. The company was expected to sell additional cargoes loading in July to tighten the domestic market.

 

FUEL OIL

The differential for MR-size cargoes of 0.5% sulfur fuel oil on an FOB South Korea basis stayed intact. On the ground of Chinese tax policy for light cycle oil (LCO) to the country and steady refining margins, GS Caltex, S-Oil, and Hyundai Oilbank in South Korea were holding its refinery runs at 90%'s, and they kept supplying plenty of gasoil and VLSFO. Also, SK Energy was raising up the operation of crude distillation unit (CDU) at its refinery and the run rates were increasing to around 75%. Owing to this, productions of 0.5% sulfur fuel oil were also rising. The company was struggling to obtain buyers for the term starting from August to sell VLSFO additionally, but the third quarter term sales have been settled.

 

Asia-products(Japanese) report sample

Products (English) report sample

Tokyo : Products Team  YOKOI Yasuaki   +81-3-3552-2411Copyright © RIM Intelligence Co. ALL RIGHTS RESERVED.