Asia's naphtha crack for front-month second-half November recovered from a three-week low to reach a six-session high of $87.15 a tonne on Thursday, supported by demand. Traders said South Korea had likely completed most of its purchases for cargoes delivering in first-half November through private negotiations and open tenders.
Japan's Idemitsu was in the market buying first-half November naphtha, with the premium estimated at $2.25 to $2.50 a tonne to Japan quotes on a cost-and-freight (C&F) basis, a trader unrelated to the company said. Taiwan's CPC was also in the market seeking full-range naphtha for November 1-25 arrival at Kaohsiung through a tender closing on October 1. Offers are to stay valid until October 2.
"Supply feels tighter due to refinery maintenance in the Middle East," a North Asian trader said. Saudi Aramco will shut a 400,000-barrels-per-day (bpd) refinery in Rabigh for 50 days of maintenance starting in early October. The refiner is a major exporter of naphtha to Asia. India's Bharat Petroleum Corp Ltd (BPCL) sold 35,000 tonnes of naphtha to Trafigura for October 21-23 loading from Mumbai at a premium of about $16 a tonne to Middle East quotes on a free-on-board (FOB) basis.
This was higher compared to the $13/tonne premium BPCL had fetched from Petro-Diamond previously for a cargo lifting on October 9-11 loading from the same port. Oil and Natural Gas Corp (ONGC) sold to Aramco Trading 34,500 tonnes of naphtha for October 22-23 loading from Hazira at a premium close to $12.50 a tonne to Middle East quotes on an FOB basis. This was lower than the $15 a tonne it had fetched from Petro-Diamond for a cargo lifting on October from the same port.
GASOLINE UP Asia's gasoline crack hit a 1-1/2-month high of $15.52 a barrel on supply tightness caused by refinery maintenance and outages. Royal Dutch Shell has not yet restarted a fire-hit refining unit at its 500,000-bpd refinery in Bukom, Singapore, traders said.
The outage came at a time when Singapore Refining Company (SRC) is shutting a crude and gasoline-making unit starting in early October while Malaysia is also expected to carry out refinery maintenance. Taiwan's Formosa has offered 250,000 barrels of 93-octane gasoline for November 21-25 loading in a tender closing on October 2. Saigon Petro was looking to buy 10,000 tonnes of 95-octane grade gasoline for November 14-18 delivery in a tender closing on October 2.