June 6, 2018 / 12:24 PM / 4 months ago

Asia Naphtha/Gasoline-Cracks down; Aramco to ink deal with Indonesia

    SINGAPORE, June 6 (Reuters) - Asia's naphtha crack fell for the second straight day to reach a
near 1-1/2 month low of $87.60 a tonne on Wednesday as high oil prices and weak gasoline fundamentals
weighed.   
    - But naphtha spot premiums stayed strong due to demand. 
    - South Korea's GS Caltex emerged to buy naphtha and paid a premium in the high teens per tonne
level to Japan quotes on a cost-and-freight (C&F) basis, traders said. 
    - The premium GS Caltex paid was similar, if not slightly higher, versus a deal SK Energy inked
last Friday.
    - Term premiums done on a C&F basis were also seen strong recently. 
    - Lotte Chemical, for instance, bought up to 900,000 tonnes of naphtha some two weeks ago for July
2018 to June 2019 delivery at premiums of $6 to $7 a tonne to Japan quotes on a C&F basis.

    - This was in sharp contrast to the discounts it paid last year for a 12-month contract expiring
in August this year. 
    
    GASOLINE: Asia's gasoline crack fell for the tenth straight session to $7.28 a barrel, the lowest
since May 15, on ample supplies. 
    - Adding to the supply is extra refinery capacity in Vietnam, where its second refinery is
expected to be fully operational by early August.
    - The 200,000-barrel-a-day (bpd) facility, owned by Nghi Son Refinery and Petrochemical LLC, is
running at 55 percent capacity and is undergoing a long start-up process. 
    - As for inventories, Japan's gasoline inventories rose 550,000 barrels to reach nearly a one-year
high of 11.66 million barrels in the week to June 2, official data showed.
    - The data came shortly after projections from analysts in a Reuters poll showed U.S. gasoline
inventories were seen higher last week.
    
    * TENDERS: Saudi Aramco will be among the many suppliers selling gasoline to Pertamina through a
six-month contract ending December, traders said. This will be the first term agreement between Aramco
and Indonesia, they said.
        
    OTHER NEWS: Japan's Cosmo Oil restarted a 102,000-barrels-per-day (bpd) crude distillation unit
(CDU) at its Chiba refinery on Wednesday after it was shut for planned maintenance on April 19.

        
    * CASH DEALS: Three gasoline deals and two on naphtha.
 LIGHT DISTILLATES                                                                                    
 CASH ($/T)                        ASIA CLOSE        Change   % Change   Prev Close   RIC
 OSN Naphtha CFR Japan M1                    656.25    -1.75      -0.27       658.00  NAF-1H-TYO
 OSN Naphtha CFR Japan M2                    645.00    -2.00      -0.31       647.00  NAF-2H-TYO
 OSN Naphtha Diff                             11.25     0.25       2.27        11.00  NAF-TYO-DIF
 Naphtha Netback FOB Sing                     71.29    -0.19      -0.27        71.48  NAF-SIN
 Naphtha Diff FOB Sing                         1.00     0.05       5.26         0.95  NAF-SIN-DIF
 Naphtha-Brent  Crack                         87.60    -3.40      -3.74        91.00  NAF-SIN-CRK
 Gasoline 97                                  86.75    -0.05      -0.06        86.80  GL97-SIN
 Gasoline 95                                  85.45    -0.10      -0.12        85.55  GL95-SIN
 Gasoline 92                                  83.10     0.10       0.12        83.00  GL92-SIN
 Gasoline crack                                7.28    -0.12      -1.62         7.40  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                                                                                 
 NWE Naphtha M1                                                                                       
 NWE Naphtha M1/M2                                                                                    
 NWE Naphtha M2                                                                                       
 Crack NWE Naphtha-Brent M1                                                                           
 Crack NWE Naphtha-Brent M2                                                                           
 *Sing refers to Singapore                                                                            
    

 (Reporting by Seng Li Peng; Editing by Mark Potter)
  
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