GASOLINE

The differential for MR-size cargoes of 92RON gasoline on an FOB Northeast Asia basis were down on ample supply. Inventories of gasoline in Singapore were said to stay high. On Wednesday, a refiner in China sold an MR-size cargo of 92RON gasoline loading on Jan 20-21 from South China at a discount of 20cts/bbl to Singapore quotations on an FOB basis.

NAPHTHA

The recent sharp declines in the Northeast Asia market prompted several end-users to procure spot cargoes due to a sense of reasonable prices. An Asian oil company mentioned that CFR Japan prices for open-spec grade were at a premium of around $25/mt to Japan quotations. Also, bids by other end-users in South Korea and Japan went down. An Asian market participant said that buyers had ample inventories and were not in hurry to purchase, so that they have been waiting for the dive in naphtha prices. On the other hand, in Northeast Asia, until the timing for second-half January delivery, the prices had surged and were relatively high, so a market viewer pointed out that the prices for first-half February onward would slightly wane.

MIDDLE DISTILLATES

The differential for MR-size cargoes of 0.001% sulfur gasoil on an FOB Taiwan basis weakened on expectations that demand would retreat. A market source said that 600,000bbl of 0.001% sulfur gasoil loading in January from Taiwan was reportedly traded at a discount of 45cts/bbl to Singapore quotations on an FOB basis. Laycan of the cargo was unknown. However, judging from recent supply/demand fundamentals in Northeast Asia, a trader pointed out that usual cargoes from Taiwan could be traded at a discount of 20-30cts/bbl to Singapore quotations on an FOB basis. Meanwhile, each refiner in China was said to be actively making moves to export gasoil in part due to slow demand of gasoil at home.

FUEL OIL

The differentials for MR-size cargoes of both 0.3% and 0.5% sulfur fuel oil on an FOB South Korea basis were up. Demand of 0.3% sulfur fuel oil for power generation rose and of 0.5% sulfur fuel oil in Asian regions were firm. A market source said that prices for 0.3% sulfur fuel oil loading from South Korea rose to a premium of around $315/mt to Singapore quotations (180cst). Also, a South Korean oil company viewed that VLSFO prices in South Korea surged, and deal levels for 0.5% sulfur fuel oil cargoes on an FOB Korea basis also hiked to a premium of more than $300.00/mt to Singapore (180cst), about $20/mt higher than FOB Singapore prices.

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