Asia's naphtha crack hit a 10-week low of $12.18 a tonne on Tuesday on mostly muted spot demand and ample supplies. Based on data from IHS Markit, Asia will continue to grapple with oversupply next month although the excess volume will be lower than this month.
The consultancy firm expects the September supply surplus to be 100,000 tonnes versus 150,000 to 200,000 tonnes in August. Oil major Exxon Mobil bought 50,000 tonnes of full-range naphtha for late September loading from Kuwait at a premium in the mid-teens a tonne level to Middle East quotes on a free-on-board (FOB) basis through a tender on Aug. 22, industry sources who track naphtha deals said.
This however could not be independently confirmed as buyers and sellers typically do not comment on their deals. India's HPCL is looking to import more gasoline after already purchasing more than 120,000 tonnes of the fuel for September to early October arrival at Vizag and Mundra from sellers including Trafigura and ENOC, industry sources said.
HPCL is now looking to buy 30,000 tonnes for Oct. 5-8 arrival at Vizag. China's WEPEC had late last week sold up to 36,000 tonnes of gasoline for Sept. 23-26 loading from Dalian at premium of about 40 cents a barrel to Singapore quotes on a FOB basis, down 10 cents versus a deal it had done for a cargo loading on Aug. 28-30.
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