off-the-wire

Asia Naphtha/Gasoline-Naphtha cracks at almost nine-month high on sporadic demand

Kitco Media
By Reuters
Published:
Updated:
Reuters
SINGAPORE, Feb 6 (Reuters) - Asia's naphtha cracks firmed to almost a nine-month high on some sporadic demand for second-half March parcels, while oil futures slipped at a faster pace in comparison. Refining margins for the petrochemical feedstock were valued at $102.73 a tonne at the close of Monday's trading session, despite physical price discussion levels slipping by around $2 per tonne. The prompt-forward price structure for the naphtha market remained backwardated, as the second-half March fundamentals stayed firm on buying interest from Asian crackers. At least two regional buyers were in the market seeking to cover their spot March requirements through private negotiations. This is against a backdrop of limited non-Russian origin inventories within Asia, a Singapore-based analyst said. On the gasoline front, RON92 cracks declined for the third straight session to close at $11.72 a barrel, tracking the weakness in northwest Europe cracks, weak U.S.
gasoline futures and a closed arbitrage for Asian exports to the West. Worries that China's March exports for the transportation fuel could increase, ahead of higher crude run expectations, weighed on prices. Thin market activity cushioned price weakness, with only offers available in the afternoon trading session.


TENDERS - Taiwan's CPC Corp offers March-loading reformate


SINGAPORE CASH DEALS - No naphtha or gasoline deals.


NEWS - Oil prices inched up on Monday after falling 8% last week to more than three-week lows as concerns that slower growth in major economies may limit fuel consumption outweighed signs of a demand recovery in China, the world's top oil importer. - Oil producers may have to reconsider their output policies following a demand recovery in China, the world's second-largest oil consumer, the International Energy Agency's Executive Director Fatih Birol said on Sunday. PRICES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC OSN Naphtha CFR Japan M1 706.25 -2.25 -0.32 708.50 OSN Naphtha CFR Japan M2 695.25 -2.25 -0.32 697.50 OSN Naphtha Diff 11.00 0.00 0.00 11.00 <NAF-TYO-DIF > Naphtha Netback FOB Sing 76.47 -0.25 -0.33 76.72 Naphtha Diff FOB Sing 0.40 0.00 0.00 0.40 <NAF-SIN-DIF > Naphtha-Brent Crack 102.73 8.18 8.65 94.55 <NAF-SIN-CRK > Gasoline 97 97.12 -5.19 -5.07 102.31 Gasoline 95 95.37 -1.84 -1.89 97.21 Gasoline 92 92.19 -1.92 -2.04 94.11 Gasoline crack 11.72 -0.53 -4.33 12.25 <GL92-SIN-CR K>
For a list of derivatives prices, including margins, please
double click the RICs below.
Brent M1 Naphtha CFR Japan M1 <NACFRJPSWMc1


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Naphtha CFR Japan M1/M2 <NACFRJPSDMc1


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Naphtha CFR Japan M2 <NACFRJPSWMc2


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Naphtha Japan-Sing Netback <NAPTC4SPDMc1
M1 >
Naphtha Japan-Sing Netback <NAPTC4SPDMc2
M2 >
Naphtha FOB Sing M1 <NAFOBSGSWMc1


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Naphtha FOB Sing M1/M2 <NAFOBSGSDMc1


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Naphtha FOB Sing M2 <NAFOBSGSWMc2


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Naphtha Cracks M1 <NACFRJPCKMc1


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East-West Naphtha M1 East-West Naphtha M2 NWE Naphtha M1 NWE Naphtha M1/M2 <NAPCNWEASMc1


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NWE Naphtha M2 Crack NWE Naphtha-Brent M1 <NAPCNWEACMc1


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Crack NWE Naphtha-Brent M2 <NAPCNWEACMc2


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*Sing refers to Singapore
(Reporting by Trixie Yap)

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