Gasoline: CPC sells 95RON gasoline

The differential for MR-size cargos on an FOB Northeast Asia basis was unchanged on week. The market was weighed on weak demand. A sense of surplus cargoes loading in March remained prevailing since talks on February-loading cargoes. In spot talks on March-loading, CPC Co in Taiwan sold 95RON gasoline for the second-half March loading.at a premium of around $2.00/bbl to the 92RON quotations on an FOB basis. One or two MR-size cargoes were awarded. The company had initially targeted selling 92RON gasoline as well when the tender had been opened. According to a market source, some bids were shown for 92RON, but even the highest one was only at a slight premium to the quotations.

In the US, Valero Energy was reported to start scrapping the 170,000bbl-per-day Benicia refinery in San Francisco. According to a market participant, the closing operations were expected to be completed in April.

Naphtha: Market bullish due to fewer supply from Med Sea

The second-half March open-spec naphtha prices on a CFR Japan basis became strong on week. It was pointed out that the arbitrage cargoes from the Mediterranean Sea would decrease due to the bad weather in the entire sea. According to a market participant, the Skikda port in Nigeria had been open only for around 15 days during January. Supply from the European side such as Milazzo was also delayed.

In spot talks, GS Caltex in South Korea bought heavy full range naphtha for delivery in the second-half March via a tender closed on Thursday. The awarded price was heard to be at a premium of $12-13/mt to the Japan quotations on a CFR basis. This cargo seemed to have been B grade.

Kuwait Petroleum Corp (KPC) struck annal term sell contracts starting in April with end-users and traders. The awarded price for light was at a premium of around $20/mt and that for full range was at a premium of around $18/mt to the quotations on an FOB basis, the same levels as the annual term contracts starting in November last year. As prices for the term contracts did not go down, a part of market participants believed that market sentiment on a CFR basis might be supported going forward.

Middle distillates: CPC sells two 0.001% sulfur gasoil cargoes for March-loading

The differentials for MR-size cargoes of jet fuel on an FOB Northeast Asia basis recovered. Supply from South Korea was expected to decrease due to turnaround. Actively sales that had been witnessed for cargoes loading in February disappeared, and the market edged up.

The differentials for MR-size cargoes of 0.001% sulfur gasoil on an FOB Northeast Asia basis slightly went up on strong buying interest for some destinations like Australia. With discussions for cargoes loading in March starting, strong selling interest for cargoes loading in February to digest inventories retreated, which also became a bullish factor for the market.

CPC Co in Taiwan sold two MR-size cargoes of 0.001% sulfur gasoline loading on Mar 10-14 and Mar 19-25 at a premium of 20cts/bbl and at a discount of $20/bbl. The oil firm had initially planned to sell an MR-size cargo loading on Mar 10-25, but seemed to have increased to two MR-size cargoes amid buying interest in the market staying strong.

Fuel oil: Several cargoes from Al-Zour arriving

The differential for MR-size cargoes of 0.5% sulfur fuel oil on an FOB South Korea basis was unchanged. Market players took a wait-and see stance as it was too early to discuss cargoes loading in March.

In South Korea, several petroleum companies planned to conduct turnaround of secondary units such as residue fluid catalytic crackers (RFCC) in March. It might cause surplus fuel oil. But refiners in the country prioritized supply for the bunker market and it was hard to sell fuel oil cargoes.

In Singapore, cargoes were brought from outside regions and inventories remained ample. In January, four LR-size cargoes of 0.5%S fuel oil seemed to have been brought to Singapore from the 615,000b/d Al-Zour refinery of Kuwait Petroleum Corp (KPC).