RTRS:Asia Naphtha/Gasoline-Price down on crude; timespreads firm
SINGAPORE, Aug 5 (Reuters) - Asia's naphtha price ended the
week at a five-week low on Friday, with cracks falling to their
lowest in about two weeks but physical timespreads remained firm
to reflect healthy fundamentals compared with end-May to
second-half July.
Naphtha prices were about 6.5 percent lower, weighed down by
weaker Brent which had fallen to $106.56 a barrel at 0830 GMT
compared to $113.15 a day ago around the same time.
"The fall in cracks today was due to the weaker naphtha
prices which reacted to crude. The timespreads give you a better
view of where fundamentals are," said a trader.
Timespreads remained in the positive zone for the seventh
straight session on firmer ethylene prices caused by a supply
void after Formosa had to prolong the shutdown of its No. 1
naphtha cracker.
This has led to some of its petrochemical units reliant on
ethylene, made mainly from naphtha, to buy spot ethylene,
traders said.
"Ethylene spot offers have jumped to $1,300 a tonne on a
cost-and-freight (C&F) basis, but bids were lagging at around
$1,200-$1,250 a tonne," said a trader.
"By looking at the bids, they indicate that ethylene prices
have risen by about $100.00 a tonne within a month. The impact
of Formosa's cracker shutdown has been build into the price."
Formosa's No. 1 cracker remains shut following after more
than two months due to more outages at the Mailiao site.
It's 540,000 barrels per day refinery is also shut.
Gasoline cracks were around a three-session high, with
Vietnam's Petrolimex seeking an additional, small cargo of under
20,000-tonne for second-half August loading in a tender due to
be awarded next Wednesday.
It had previously bought more than 70,000 tonnes of gasoline
for August delivery at a discount of about 20 cents a barrel to
Singapore quotes on a free-on-board (FOB) basis for 92-octane
grade, and more than 20 cents a barrel premium for 95-octane
grade.
Gasoline stocks independently held in the
Amsterdam-Rotterdam-Antwerp hub fell just over 8 percent on the
week to 616,000 tonnes due to cargoes to the United States and
Africa, independent Dutch oil analyst Pieter Kulsen said on
Thursday.
The driving season in the U.S. continued to disappoint,
however, while the barge business was also slow. Cargo trade was
the main reason stocks were lower on the whole, according to
Kulsen.
* JAPAN OPEN-SPEC NAPHTHA NAF-1H-TYO: The price for front-
month second-half September fell $61.00 to $906.50 a tonne,
lowest since June 29 at $904.00 a tonne.
* BACKWARDATION/CONTANGO: The intermonth spread
backwardation between second-half September and second-half
October widened 25 cents to $1.50 a tonne.
* CRACK SPREAD NAF-SIN-CRK: Cracks -- the profits or
losses of refining Brent crude into naphtha -- dropped $11.58 to
$107.30 a tonne premium, lowest since July 18 at $104.60 a
tonne.
* NAPHTHA TENDERS: BPCL sold 27,000 tonnes to PetroChina for
Aug. 25-28 loading from Kochi at premiums of nearly $10.00 a
tonne to Middle East quotes on a free-on-board (FOB) basis.
- This was higher compared to the $9.10 a tonne it had
previously fetched from Cargill for a cargo lifting on Aug.
6-10.
* NAPHTHA CASH DEALS: Shell bought from BP a second-half
October cargo at $905.00 a tonne.
* REFORMING MARGINS: Gasoline's premium to naphtha
GL92-SIN-DIF recovered 21 cents to $15.75 a barrel, highest in
three sessions.
* GASOLINE CRACKS GL92-SIN-CRK: Cracks -- premiums/losses
obtained from refining Brent crude into gasoline -- recovered 47
cents to $7.20 a barrel, highest in two sessions.
* GASOLINE CASH TRADES: Five deals.
- Vitol sold to Shell a 95-octane cargo for Aug. 20-24
loading at $118.60 a barrel.
- But it bought from Total a 95-octane cargo for Aug. 31 to
Sept. 4 loading at $3.00 a barrel premium to Singapore 92-octane
quotes on a free-on-board (FOB) basis.
- Vitol also bought from Trafigura a 92-octane cargo for
Aug. 26-30 loading at $113.90 a barrel.
- Shell further bought a 97-octane cargo for Aug. 20-24
lifting period from Morgan Stanley at $121.50 a barrel.
- Morgan Stanley bought a 92-octane cargo from Total for
Aug. 23-27 loading at $113.95 a barrel.
