SINGAPORE: Asia's benchmark open-specification naphtha price for second-half November was $4.50 a tonne more than second-half December, making this the highest front-month price against the following month since May 21.
- Front-month prices typically rise above the following month's prices when fundamentals are strong, and the industry usually label this as a backwardated intermonth spread.
- Firm demand and a lack of increase in European naphtha cargoes arriving in Asia next month were supporting the market, traders said.
TENDERS: South Korea's Lotte Chem bought naphtha for second-half November arrival at Yeosu and Daesan at premiums of about $4.25 to $4.75 a tonne to Japan quotes on a cost-and-freight (C&F) basis.
- This was higher versus $2.50 to $3.00 a tonne premium Lotte Chem had paid on Sept. 19 for cargoes delivering to the same ports in first-half November.
INDIAN TENDERS: India's Reliance Industries could have sold 55,000 tonnes of naphtha for late October loading from Sikka to Vitol at premiums of about $11 to $12 a tonne to Middle East quotes on a free-on-board (FOB) basis.
- The premiums were similar to a cargo Vitol had bought from Reliance previously for Oct. 13-15 loading from the same port, traders said.
- This, however, could not be independently verified as buyers and sellers do not comment on their deals.
- Essar Oil has likely sold up to 35,000 tonnes of naphtha for Oct. 24-28 loading from Vadinar to BP. Similarly, this could not be confirmed.
GASOLINE: Asia's gasoline crack was at a two-session high of $10.26 a barrel.
- Indonesia's Pertamina, Asia's top gasoline importer, emerged to seek 200,000 barrels of 92-octane grade gasoline for Nov. 3-5 arrival at Balongan through a tender closing on Oct. 4, with offers to stay valid until Oct. 6, a document showed.
INVENTORIES: China has produced nearly 11 million tonnes of gasoline in August, bringing its total production since January this year to about 87 million tonnes, official data showed.
- In the US, analysts forecast that stockpiles of gasoline have likely risen by 1 million barrels last week, a preliminary Reuters poll showed on Monday.
CASH DEALS: One naphtha deal and eight on gasoline.
- ENOC bought four of the eight cargoes, bringing its total purchases since Monday to six cargoes or 300,000 barrels.
- It had in September sold 35 to 36 percent of the total traded volume at about 4.85 million barrels.
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