GASOLINE

The differentials for gasoline on an FOB Northeast Asia basis were unchanged. Talks on spot cargoes loading in September had yet to be heard. Amid the market going forward still uncertain, refiners in Northeast Asia stayed in a wait-and-see stance. CPC in Taiwan were going to skip spot sales for cargoes loading in September due to worsening reefing margins. Formosa Petrochemicals Co (FPCC) said it would have no spot cargoes loading in the month.

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. A market source said that a cargo from the Middle East could be traded at a premium of around $20/mt to Middle East quotations on an FOB basis. However, market sentiment was weak on expectations that demand in Northeast Asia would retreat. As COVID-19 was spreading again in the region, demand of petrochemical products was expected to be softening.

MIDDLE DISTILLATES

The differentials for MR-size cargoes of 0.001% sulfur gasoil on an FOB Northeast Asia basis extended losses. Traders subdued selling ideas as exports from China were expected to increase. Bids for cargoes loading in September from South Korea to be brought into Australia were heard at a discount in the range of 70-80cts/bbl to Singapore quotations on an FOB basis. Meanwhile, several sellers were making moves to sell 0.001% sulfur gasoil loading in September from South Korea. Selling ideas were quoted at a discount of 30-40cts/bbl to the quotations on an FOB basis. Deals had yet to be heard amid the wide gap between selling and buying ideas.

FUEL OIL

The differential for MR-size cargoes of 0.5% sulfur fuel oil on an FOB South Korea basis had dipped, but went up again late in the week on tight supply/demand fundamentals. Amid limited supply, demand for bunker fuel was increasing. A refiner in South Korea procured a cargo to be delivered in August from Singapore.

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