Gasoline: Non-oxy gasoline premium pushed down by sharp backwardation

　 The differentials for MR-size cargoes of non-oxy gasoline went down. In the Singapore paper market, the Sep/Oct spread was in backwardation in the mid-$4's/bbl, and premiums were likely to be pressured downwards as loading dates moved from mid to late-month. On Thursday, CPC Co in Taiwan sold an MR-size cargo of 93RON gasoline for late September loading via a tender at a premium of $3.50/bbl to the quotations on an FOB basis.

　 Although premiums were compressed in line with the inter-month spread, supply/demand fundamentals were tight due to limited availability of September loading non-oxy grade cargoes. A Singapore-based trader pointed out that South Korean players, including GS Caltex, were not selling in the market, which was one factor contributing to the tight supply.

Naphtha: Market down, "export from ME steady"

　 Differentials for open spec naphtha for delivery in the second half September on a CFR Japan basis softened. A sense of tight supply/demand fundamentals was gradually easing, and the market was weakening. According to a Singapore-based trader, exports from the Middle East remained steady. KPC was heard to be progressing with sales on a CFR Japan basis, and naphtha from Saudi Arabia and Abu Dhabi in the UAE was reportedly continuously supplied via Ship To Ship (STS) operations.

　 Weakness in demand also continued. According to one trader, little buying interest for spot procurements was observed from Japanese players. In China, by capping gasoline production, naphtha supply for petrochemical use increased, reportedly enabling them to meet domestic demand to some extent with locally produced volumes.

　 Hanwha TotalEnergies in South Korea conducted a buy tender for the second half September delivery heavy full-range naphtha on Aug 13, but reportedly withdrew it. A market source indicated that they would prioritize the use of condensate.

Middle distillates: Gasoil market down by resumed China exports

　 Differentials for MR-size cargoes of jet fuel loading in Northeast Asia basis rose. Strong buying interest fueled by future supply concerns amid a deteriorating geopolitical situation pushed up the market. In Europe, the market was firming on the back of low jet fuel inventories, and traders were likely to target procurements from Asia for Europe. In the spot market, GS Caltex sold 300,000bbl each for loading on Sep 11-15 and Sep 25-29 via a tender on Aug 12 at a premium of $1.20/bbl to the quotations on an FOB basis, and at a discount of 10cts/bbl to the same quotations, respectively.

　 Differentials for MR-size cargoes of 0.001% sulfur gasoil on an FOB Northeast Asia basis l fell. Previous supply concerns somewhat eased on the back of resumed exports from China and other factors. In the spot market, GS Caltex in South Korea sold 300,000bbl of 0.001% sulfur gasoil loading on Sep 25-29 via a tender at a premium of 50cts/bbl to the quotations on an FOB basis.

Fuel oil: tight supply continues for 0.5% sulfur FO

　 Differentials for MR-size cargoes of 0.5% sulfur fuel oil on an FOB South Korea basis remained unchanged. A sense of tight supply continued, mainly in the Singapore market. With a renewed sense of tension in the Middle East, buying was reportedly proactive in the Singapore market due to future supply concerns. In the spot market, Nigeria's 650,000 b/d Dangote refinery closed a sell tender on Aug 12 for 80,000mt of low sulfur straight run fuel oil (0.5%S) and 50,000mt of slurry fuel oil.