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Products: Dec 17-21: FOB Middle East naphtha premiums widen on tight supply

2018/12/24 07:00


The differential for MR-size cargoes of gasoline on an FOB Northeast Asia softened. Buying interest of traders were weak. In addition to increasing freight rates, it was hard for buyers to secure vessels. In Singapore, inventories of gasoline and gasoil stood high. In the meantime, on Tuesday, a refiner in China sold an MR-size cargo of 92RON gasoline loading on Jan 12-13 from South China at a discount of around $1.35/bbl to Singapore quotations on an FOB basis.



The differential for naphtha cargoes on an FOB Middle East basis went up as a sense of ample supply was easing. Qatar Petroleum reportedly sold a cargo loading in the first half of January at a premium of close to $10.00/mt to the quotations. A market source said that the differential seemed to have been supported as the volume of arbitrage cargoes from Europe to Asia was declining due to high freight rates in Asia.



The differential for MR-size cargoes of 0.001% sulfur gasoil on an FOB Northeast Asia extended losses. Buying interests of traders for cargoes loading in January remained weak. Under such circumstances, an MR-size cargo of 0.001% sulfur gasoil loading in January from Japan was reportedly traded at a discount of slightly narrower than $1.70/bbl to Singapore quotations on an FOB basis. A refiner in South Korea sold 30,000mt of 0.001% sulfur gasoil loading in mid-January at a discount of $1.50/bbl to the quotations. In China, a refiner was making moves to sell 20,000mt of 0.005% sulfur gasoil loading on Jan 6-7.



The differential for MR-size cargoes of 3.5% sulfur fuel oil was at a premium in the range of $1.00-2.00/mt to Singapore quotations, down $1.00/mt. Due to high freight rates, inquiries from China, one of the main outlets of South Korea products, were scarce. Meanwhile, a refiner in South Korea said that demand for bunker fuel in the domestic market was decreasing. Therefore, refiners in the country were likely to sell excessive volumes as cargoes.


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Tokyo : Products Team  Yoshiya Futakawa  +81-3-3552-2411
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