June 21, 2018 / 10:13 AM / 8 months ago

Asia Naphtha/Gasoline-Cracks recover but fundamentals seen weaker

    SINGAPORE, June 21 (Reuters) - Asia's naphtha crack recovered slightly from a two-month low to a
two-session high of $71.75 a tonne on Thursday as Brent crude prices fell but naphtha fundamentals
were under pressure as more supplies were expected. 
    - This has eroded premiums, with South Korea's YNCC scooping up some 125,000 tonnes of the fuel
for first-half August delivery to Yeosu at around $5.50 a tonne to Japan quotes on a cost-and-freight
    - This was the lowest premium it has paid since March this year.
    * TENDERS: India's Oil and Natural Gas Corp (ONGC) sold 35,000 tonnes of naphtha for July 12-13
loading from Mumbai at a premium of about $22 a tonne to Middle East quotes on a free-on-board (FOB)
basis, traders said, adding that the buyer could be Gunvor. 
    - This could not be independently confirmed as buyers and sellers typically do not comment on
    - ONGC had most recently sold a cargo to BP for June 8-9 loading from the same port at similar
premium levels.
    - Reliance sold 55,000 tonnes of naphtha for July 15-17 loading from Sikka at a premium of about
$17 a tonne, sharply down from about $30 it had fetched for an early June cargo previously. 
    - Traders added that the second-half July cargo was sold to Trafigura, who also bought the early
June cargo. 
    * GASOLINE: Asia's gasoline crack similarly recovered from a 22-month low to a two-session high
of $4.15 a barrel but it has lost 44 percent of its value when compared to the start of the year due
to ample supplies. 
    - Singapore's onshore light distillates stocks fell by about 4.5 percent or 563,000 barrels to
reach its lowest in about 6-1/2 months of around 12.1 million barrels in the week ended Wednesday,
official data showed.
    - But the stockpiles were still 15.2 percent higher versus the same period last year. 
    - Gasoline stocks in the U.S. rose 3.3 million barrels last week, data from the
Energy Information Administration showed.
    * TENDERS: Sri Lanka's Ceypetco was looking to import a total of least 5 million barrels of
gasoil and gasoline through two contracts starting Sept. 1, 2018 and expiring on June 30, 2019. 
    - Final results were not immediately clear but Ceypetco had received offers from Vitol,
PetroChina and Gulf Petrochem. 
    - Offers for 92-octane grade range from around $2.75 to $3.30 and 95-octane grade from nearly
$2.90 to $3.20 pegged to different interest rates. 
    * OTHER NEWS: Australia's largest supermarket operator Woolworths Group Ltd cancelled a A$1.8
billion ($1.3 billion) sale of its petrol stations to BP on Thursday, after it was blocked by
Australia's antitrust regulator.
 LIGHT DISTILLATES                                                                                   
 CASH ($/T)                         ASIA CLOSE       Change    % Change   Prev Close  RIC
 OSN Naphtha CFR Japan M1                    624.50    -11.50      -1.81      636.00  NAF-1H-TYO
 OSN Naphtha CFR Japan M2                    618.50    -11.00      -1.75      629.50  NAF-2H-TYO
 OSN Naphtha Diff                              6.00     -0.50      -7.69        6.50  NAF-TYO-DIF
 Naphtha Netback FOB Sing                     67.87     -1.26      -1.82       69.13  NAF-SIN
 Naphtha Diff FOB Sing                         0.80     -0.20     -20.00        1.00  NAF-SIN-DIF
 Naphtha-Brent  Crack                         71.75      3.12       4.55       68.63  NAF-SIN-CRK
 Gasoline 97                                  81.00     -1.60      -1.94       82.60  GL97-SIN
 Gasoline 95                                  79.80     -1.60      -1.97       81.40  GL95-SIN
 Gasoline 92                                  77.85     -1.40      -1.77       79.25  GL92-SIN
 Gasoline crack                                4.15      0.55      15.28        3.60  GL92-SIN-CRK
 For a list of derivatives prices, including margins, please double                                  
 click the RICs below.                                                                
 Brent M1                                                                                            
 Naphtha CFR Japan M1                                                                                
 Naphtha CFR Japan M1/M2                                                                             
 Naphtha CFR Japan M2                                                                                
 Naphtha Japan-Sing Netback M1                                                                       
 Naphtha Japan-Sing Netback M2                                                                       
 Naphtha FOB Sing M1                                                                                 
 Naphtha FOB Sing M1/M2                                                                              
 Naphtha FOB Sing M2                                                                                 
 Naphtha Cracks M1                                                                                   
 East-West Naphtha M1                                                                                
 East-West Naphtha M2                                                                                
 NEW Naphtha M1                                                                                      
 NEW Naphtha M1/M2                                                                                   
 NEW Naphtha M2                                                                                      
 Crack NEW Naphtha-Brent M1                                                                          
 Crack NEW Naphtha-Brent M2                                                                          
 *Sing refers to Singapore                                                                           

 (Reporting by Seng Li Peng; Editing by Amrutha Gayathri)
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