Gasoline: CNOOC sells early Oct cargo from Hainan

The differential for MR-size cargos of 91RON gasoline on an FOB South Korea unchanged. However, market sentiment was steady with small sales volumes. In addition, supply for the fuel was generally tight because some refining facilities had plans of turnaround in addition that others were suffering from troubles. Meanwhile, a part of Japanese refiners remained in an import-position. In the spot market, China National Offshore Oil Corp (CNOOC) sold 12,000mt of 92RON non-oxy gasoline loading in Hainan on Oct 3-4. This cargo was reportedly bound for Burney. In South Korea, GS Caltex closed a sell tender for one MR-size loading on Oct 13-17. In China, Sinochem sold one MR-size cargo of 92RON gasoline loading on Sep 24-26 via a tender.

Naphtha: Market goes up on expected tightening supply

he second half October open-spec naphtha prices on a CFR Japan basis slightly went up. Supply was expected to be tighter and it supported the market. In the spot market one petrochemical company in South Korea bought 25,000mt of open-spec naphtha for delivery in the second half of October at a premium of around $5/mt to the second half of September on a CFR basis

Aster Chemicals and Energy in Singapore was reportedly targeting to restart its 1.10 mil mt per year ethylene unit in November and it was also heard that a part of naphtha cargoes that was initially scheduled to be delivered into Aster became surplus. According to a market participant, however, surplus cargoes might be delivered into other naphtha crackers because others had room to raise the operation rates.

The second half October heavy grade naphtha prices on a CFR Japan basis were stable. No changes of supply/demand fundamentals were heard. One South Korean company bought an MR-size cargo of heavy naphtha for delivery in the second half of October via a tender closed on Thursday. The awarded price was reported at a premium in the high $20's/mt to the quotations on a CFR basis.

Middle distillates: GO prices go up as tight fundamentals looming across the globe

The differentials for MR-size cargoes of jet fuel on an FOB Northeast Asia basis went down. Sales for September loading cargoes surfaced from China. On the other hand, procurements of cargoes for delivery to Australia or Japan in September were winding down, and supply/demand fundamentals were slackening. An MR-size cargo loading on Sep 23-25 from West Pacific Petroleum Co Dalian (WEPEC) refinery was reportedly traded through a tender. Oil companies in China were waiting for the government to notify the third batch of export quotas of oil products this year. However, they were moving to sell cargoes loading in September with the second batch as it was still unclear when the third one would be announced.

The differentials for MR-size cargoes of 0.001% sulfur gasoil on an FOB Northeast Asia basis strengthened. Spot cargoes were limited as talks on cargoes loading in October just started. In addition, no sales of cargoes from China were witnessed. In addition, supply/demand fundamentals in the West were also tight. Prices of gasoil in Europe stayed high on tight supply. Oil Major Shell was scheduled to conduct large-scale maintenance activities at its 404,000b/d Pernis refinery in the Netherland from mid-September to November. Its capacity of crude throughput is the largest in Europe. It was also perceived to be the factor for the strong market that Russian was reducing gasoil exports after a refinery, and an oil terminal had been attacked by Ukraine. The arbitrage window from Asia to Europe was still closed, but market players considered tight supply/demand fundamentals of gasoil across the globe as a bullish factor for the market.

Fuel oil: High sulfur fuel oil prices go up on expected thin supply

The differential for MR-size cargoes of 3.5% sulfur fuel oil(380cst) on an FOB Japan basis went up. In the Singapore market, high inventories were expected to be digested, and the prices for fuel oil were rising. As reported before, inflows of cargoes from regions outside Asia were expected to decline in the second half of September onward and a sense of ample supply was likely to be eased. The arbitrage window from the West to Asia was closed, and fresh procurements by traders seemed to be decreasing. Inflows of cargoes from the Middle East or India to Asia were also expected to decline as profitability to send cargoes from the regions to Europe was favorable.