GASOLINE

The differential for MR-size cargoes of 92RON gasoline on an FOB South Korea basis fell. The price for 92RON gasoline in Singapore was sharply falling due to sluggish demand in Southeast Asia including Indonesia. Amid the poor purchases, a refiner in South Korea was talking on a spot cargo loading in April. The company expected to sell 92RON grade to be delivered in Singapore, and its selling idea was at a discount of $3.50/bbl to the quotations on an FOB basis. However, a deal had yet to be heard.

NAPHTHA

In the Asian market, it was pointed out that demand for naphtha could be seen as crack margins of ethylene and polyethylene over naphtha were increasing. A petrochemical maker viewed that the operation rates of naphtha crackers in Asia would be possibly pulled up. Meanwhile, offers for arbitrage cargoes from Russia and Europe to Asia seemed to have been seen.

MIDDLE DISTILLATES

The differential for MR-size cargoes of 0.001% sulfur gasoil on an FOB Northeast Asia basis slushed on sluggish demand. Buying interests of traders were weakening, and sellers seemed to have lowered their offers. It was reported that an MR-size cargo of 0.001% sulfur gasoil loading at the end of April was traded at a discount of $1.70/bbl to Singapore quotations on an FOB Japan basis. For cargoes loading in May, no deals were reported to date, but some sellers perceived that tradable price for cargoes from South Korea could be at around the same level as that of the cargo from Japan loading at the end of April.

FUEL OIL

The differential for MR-size cargoes of 0.5% sulfur fuel oil on an FOB South Korea basis slipped on weak demand. In South Korea, S-Oil was said to have sold 90,000mt of 0.5% sulfur fuel oil each loading in March and April. The price for both volumes seemed to be at a discount of $90/mt to Singapore quotations (0.001% sulfur gasoil). One of South Korea oil companies viewed that the differential was equivalent to a premium of $30/mt to Singapore quotations (180cst fuel oil), judging from the deal price. Several refineries in South Korea and Japan had lowered the operation rate by 10-30%, so that supply of oil products was declining. On other hand, crack margins of 0.5% sulfur fuel stayed in the plus level, and each refiner in South Korea raised the yield of the fuel. Therefore, supply of 0.5% sulfur fuel oil seemed to remain ample.

Asia-products(Japanese) report sample

Products (English) report sample