GASOLINE

The differential for MR-size cargoes of 92RON gasoline on an FOB Northeast Asia went up. Strong buying interests pushed up the differentials. Buying interests of traders were strengthening as gasoline inventories in Singapore were declining. On Thursday, China National Offshore Oil Co (CNOOC) sold an MR-size cargo of 92RON gasoline loading on Sep 20-21 from South China at a discount of around 25cts/bbl to the quotations on an FOB basis.

NAPHTHA

The differential for LR-size cargoes of naphtha on an FOB Middle East basis was unchanged from last week. In Northeast Asa, one of main outlets for cargoes from the Middle East, demand remained weak due to the COVID-19 pandemic. Although supply from the Middle East, India, and Europe was limited, that had not become a bullish factor for the market. It was reported that a Europe-based seller was considering sales of cargoes to be delivered in October in Northeast Asia, but no buyers seemed to be interested in them, and negotiations on prices had yet to start. Meanwhile, a market source pointed out that more cargoes were expected from Europe and the US into Northeast Asia amid the recent lower freight rates.

MIDDLE DISTILLATES

The differentials for MR-size cargoes of 0.001% sulfur gasoil on an FOB Northeast Asia basis went down in the middle of the week, but rebounded toward the weekend. Supply did not increase more than expected. A market source said that exports from China loading in September were unlikely to increase than it had been initially expected. On Thursday, a refiner in South Korea sold 300,000bbl of 0.001% sulfur gasoil loading on Sep 11-15 at a discount of around 85cts/bbl to Singapore quotations on an FOB basis.

FUEL OIL

The differential for MR-size cargoes of 0.5% sulfur fuel oil on an FOB South Korea basis was at a discount of $10.00/mt to flat to Singapore quotations (0.5%S), down $10.00/mt on expectations that demand would retreat. In Singapore, one of main outlets for cargoes from South Korea, price hikes for VLSFO were sluggish as demand of bunker fuel seemed to be peaking out. The price gap of 0.5% sulfur fuel between South Korea and Singapore was narrowing, so that a market source pointed out that the differential for cargoes on an FOB South Korea weakened at least to a slight discount to the quotations.

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