June 7, 2018 / 10:27 AM / 6 months ago

Asia Naphtha/Gasoline-Cracks down on ample gasoline supply

    SINGAPORE, June 7 (Reuters) - Asia's gasoline crack fell to a one-month low of $6.39 a barrel, pulled down by
abundant supplies. 
    - Crack value has been trapped in a losing streak since May 23, despite it being a peak season as the Muslim
fasting month usually drives up demand. 
    - Although gasoline inventories in Singapore were down, they remained at high levels compared with a year ago. 
    - For instance, Singapore onshore light distillates stocks which comprise mostly gasoline and blending components
for petrol was down 3.66 percent, or 532,000 barrels, to reach a two-week low of 14 million barrels in the week to
June 6, official data showed.
    - However, the current inventory levels were 11 percent higher than a year ago. 
    - U.S. gasoline stocks on the other hand rose by 4.6 million barrels last week, Energy Information
Administration data showed.
    - This rise in stocks was sharply higher versus analysts' expectations in a Reuters poll for nearly 600,000
barrels gain. 
    - Light distillates stocks held in the Fujairah was at a two-month high of 7.48 million barrels in the week to
June 4 based on data published by Fujairah Oil Industry Zone via industry information service S&P Global Platts.


    * NAPHTHA - Asia's naphtha crack fell for the third straight session to hover around a 1-1/2 month low of $82.05 a
tonne.  
    - Demand for cargoes through tenders appeared muted.

    * TENDERS: India's Mangalore Refinery and Petrochemicals Ltd (MRPL) and Indian Oil Corp (IOC) were among the first
to offer cargoes for July loading.
    - MRPL offered 35,000 tonnes of naphtha for July 10-12 loading from New Mangalore through a tender closing on June
12. 
    - IOC had also offered 35,000 tonnes but for July 1-3 loading from Chennai through a tender which expires on late
Thursday. 
    - Bharat Petroleum Corp Ltd (BPCL) on the other hand had sold 30,000 tonnes of naphtha to Socar two days ago for
June 27-29 loading from Mumbai at premiums of about $22 a tonne to its own price formula on a free-on-board (FOB)
basis. 
    - This was down from the $25 a tonne BPCL had previously received from BP for a June 15-17 cargo. 
    - Bahrain has also sold a cargo this week at premiums in the low $20s a tonne range to Middle East quotes on a FOB
basis. 
            
    * OTHER NEWS: Malaysia's government has allocated 3 billion ringgit ($760 million) to subsidise pump prices till
the end of 2018.
      
    * CASH DEALS: One naphtha deal but none on gasoline. 
 LIGHT DISTILLATES                                                                                                    
 CASH ($/T)                             ASIA CLOSE            Change       % Change     Prev Close    RIC
 OSN Naphtha CFR Japan M1                             650.25        -6.00        -0.91        656.25  NAF-1H-TYO
 OSN Naphtha CFR Japan M2                             640.00        -5.00        -0.78        645.00  NAF-2H-TYO
 OSN Naphtha Diff                                      10.25        -1.00        -8.89         11.25  NAF-TYO-DIF
 Naphtha Netback FOB Sing                              70.63        -0.66        -0.93         71.29  NAF-SIN
 Naphtha Diff FOB Sing                                  1.00         0.00         0.00          1.00  NAF-SIN-DIF
 Naphtha-Brent  Crack                                  82.05        -5.55        -6.34         87.60  NAF-SIN-CRK
 Gasoline 97                                           85.75        -1.00        -1.15         86.75  GL97-SIN
 Gasoline 95                                           84.50        -0.95        -1.11         85.45  GL95-SIN
 Gasoline 92                                           82.15        -0.95        -1.14         83.10  GL92-SIN
 Gasoline crack                                         6.39        -0.89       -12.23          7.28  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 Sherry Jacob-Phillips)
  
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