off-the-wire

Asia Naphtha/Gasoline-Gasoline jumps as OPEC+ output cuts rock oil markets

Kitco Media
By Reuters
Published:
Updated:
Reuters
NEW DELHI, April 3 (Reuters) - Asia's gasoline prices climbed on Monday in tandem with a jump in crude oil benchmarks after Saudi Arabia and other OPEC+ oil producers announced output cuts in a surprise move. The gasoline margin for Asia jumped by more than $2 to $17.70 a barrel over Brent crude. A flurry of deals for the benchmark grade of gasoline also boosted sentiment in the market. Energy trader Aramco snapped up 250,000 barrels of octane-92 grade motor fuel, while Trafigura bought a cargo of the higher octane-95 grade, market participants said. Meanwhile, trade remained tepid for naphtha for the eighth straight session amid a rise in demand for alternative feedstock liquefied petroleum gas (LPG). Crude oil rebound in recent weeks has triggered a spike in naphtha prices making LPG a cheaper buy for petrochemical units, analysts and traders said, although spot demand for naphtha has kept the market afloat. Japan's Mitsui bought a first-half May cargo of naphtha at a premium of $13-14 per tonne last week, a Singapore-based trader said. The naphtha crack plunged by around $10 to $54.50 a tonne over Brent crude on the first trading day of April.


NEWS - Middle East crude oil supplies are set to tighten further from May after OPEC+ announced plans to cut output again, raising costs for refiners from Asia to Europe and pushing them to seek more supply from Russia, Africa and the Americas.


- Russia's largest oil producer Rosneft ROSN.MM and India's top refiner Indian Oil Corp IOC.NS agreed to use the Asia-focused Dubai oil price benchmark in their latest deal to deliver Russian oil to India, three sources familiar with the deal said. PRICES
CASH ($/T) ASIA CLOSE Change % Prev RIC Change Close
OSN Naphtha CFR 686.00 31.50 4.81 654.50 <NAF-1H-TY Japan M1 O> OSN Naphtha CFR 679.50 35.00 5.43 644.50 <NAF-2H-TY Japan M2 O> OSN Naphtha Diff 6.50 -3.50 -35.00 10.00 <NAF-TYO-D IF> Naphtha Netback FOB 74.22 3.50 4.95 70.72 Sing
Naphtha-Brent Crack 54.50 -9.68 -15.08 64.18 <NAF-SIN-C RK> Gasoline 97 107.81 7.72 7.71 100.09 Gasoline 95 105.00 7.20 7.36 97.80 Gasoline 92 101.90 7.70 8.17 94.20 Gasoline crack 17.70 2.21 14.27 15.49 <GL92-SIN- CRK>
For a list of derivatives prices, including
margins, please double click the RICs below.
Brent M1 <BRENTSGMc


1>
Naphtha CFR Japan M1 <NACFRJPSW


Mc1>
Naphtha CFR Japan <NACFRJPSD
M1/M2 Mc1>
Naphtha CFR Japan M2 <NACFRJPSW


Mc2>
Naphtha Japan-Sing <NAPTC4SPD
Netback M1 Mc1>
Naphtha Japan-Sing <NAPTC4SPD
Netback M2 Mc2>
Naphtha FOB Sing M1 <NAFOBSGSW


Mc1>
Naphtha FOB Sing <NAFOBSGSD
M1/M2 Mc1>
Naphtha FOB Sing M2 <NAFOBSGSW


Mc2>
Naphtha Cracks M1 <NACFRJPCK


Mc1>
East-West Naphtha M1 <NAPJPEWMc


1>
East-West Naphtha M2 <NAPJPEWMc


2>
NWE Naphtha M1 <NAPCNWEAM


c1>
NWE Naphtha M1/M2 <NAPCNWEAS


Mc1>
NWE Naphtha M2 <NAPCNWEAM


c2>
Crack NWE <NAPCNWEAC
Naphtha-Brent M1 Mc1>
Crack NWE <NAPCNWEAC
Naphtha-Brent M2 Mc2>

*Sing refers to
Singapore

(Reporting by Mohi Narayan; Editing by Sohini Goswami)

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