Gasoline: Markets up by tight supply and inquiry for Australia

　 The spot differentials for MR-size gasoline loading in Northeast Asia firmed on the back of a sense of tight supply. Expectations of firm demand for Australia in the Southern Hemisphere, which was approaching its demand season, also acted as a bullish factor. Around four MR-size cargoes of 92RON gasoline loading in Japan in October were reportedly traded in the spot market by the 18th. Of these, information was heard that late October loading cargoes were traded at a premium of around $3.00/bbl. According to market sources, a strengthening tendency was seen for Japan-loading cargoes to be shipped to South Korea for blending purposes to produce Australia-spec products.

　 Furthermore, MR-size 92RON loading in Taiwan in late October was reportedly at a slightly lower price than Japan-loading cargoes. It was noted that there was a strong tendency for Taiwan-loading cargoes to be brought into Singapore, and FOB-based prices were easily capped compared to Japan-loading cargoes due to factors such as freight.

Naphtha: Japan's Mitsui Chem buys 1H Nov OSN

　 The spot differentials for first-half November delivering Japan Open-spec naphtha (OSN) remained largely unchanged. As supply/demand fundamentals for petrochemical products remained slack, the olefin market was unable to keep pace with the recent rise in naphtha prices, and the naphtha/olefin spread was not easily widening. Consequently, no moves to raise naphtha cracker operational rates were heard.

　 Meanwhile, tight gasoline supply continued, and demand for naphtha as a feedstock also remained strong.

　 In the spot market this week, Mitsui Chemicals bought 25,000mt of open-spec naphtha for first-half November delivery to Osaka. Information was heard that the price was at a premium of around $19.00/mt on a CFR basis to the quotations. The company's Osaka plant's naphtha cracker's startup from turnaround was delayed, but it was reportedly restarted on Sep 14.

Middle distillates: Sales for gasoil from China start

　 The spot differentials for MR-size jet fuel loading in Northeast Asia rose. Traders were strengthening their buying interest on supply concerns. Unabated crude supply concerns and uncertainty over refinery operations led oil firms to curtail spot sales. Furthermore, uncertainty over China's export availability in October further bolstered a sense of tight supply.

　 The spot differentials for MR-size 0.001% sulfur gasoil loading in Northeast Asia fell late in the week. Chinese players starting sales of October-loading cargoes weighed on the market. CNOOC moved to sell one MR-size cargo loading on Oct 10-12. Additionally, one MR-size cargo loading in late October was also reportedly sold from China by an unidentified seller. While China's export policy remained unclear, oil firms moving to sell led to an emerging outlook for increasing future supply.

Fuel oil: Sales from Korea limited due to prioritize supplying the bunker makret

　 The spot differentials for MR-size 0.5% sulfur fuel oil loading in South Korea were unchanged. Offerings were scarce, and spot transactions remained sluggish. On the back of crude supply concerns and firm bunker prices. South Korean oil firms continued to prioritize supplying the bunker market. Buying and selling of fuel oil cargoes were rarely seen.

　 Meanwhile, October-loading spot cargoes from Japan have emerged [1, Naphtha text in query history]. Cosmo Oil is conducting a sell tender for 30,000mt of low sulfur fuel oil (maximum 0.35% sulfur) loading in Chiba in mid-October, with a tender closing on the 18th. The company has reportedly gained export availability for low sulfur fuel oil as it has increased the operational rates of its residue desulfurization unit (RDS) at its Chiba refinery.

　 Meanwhile, in China, while intentions to import low sulfur fuel oil for bunkering purposes were heard, players were reportedly hesitant to procure, averse to the current high market prices.