Asia Naphtha/Gasoline-Gasoline crack reaches one-year low, naphtha margins climb

Reuters10-01

Oct 1 (Reuters) - Asia's gasoline margins dipped as lower seasonal demand impacted the market and affected market sentiments.

The crack dipped to a year's low of $3 per barrel over Brent crude, its lowest since Oct. 18, 2023.

Explaining the exponential drop in gasoline margins, a regional trader shared that "due to the end of seasonal demand, there is not much demand for gasoline. Even some delay due to bad weather also do not stir up the market, and overall market is sluggish". "Although maybe Australia's driving season will support the market, but as of now there is not much push in the market," he added.

In naphtha, the crack gained for the fourth straight session and reached a 10-month high of $115.25 per metric ton over Brent crude, its highest since Dec. 18, 2023.

NEWS

Oil prices slid by more than 2% on Tuesday as a stronger supply outlook and tepid global demand growth outweighed fears over escalating conflict in the Middle East and its impact on crude exports from the region. Brent crude futures were down $1.49, or 2.08%, at $70.21 a barrel. U.S. West Texas Intermediate crude futures lost $1.55, or 2.27%, to $66.62.

U.S. oil demand rose in July to the highest seasonal level since 2019, while output declined for the second time in three months, data from the U.S. Energy Information Administration showed on Monday.

The U.S. has bought 6 million barrels of oil for the Strategic Petroleum Reserve for delivery through May 2025, the Department of Energy said on Monday. The U.S. bought 3.5 million barrels from Exxon Mobil XOM.N, 2 million from Shell Trading Company, and 500,000 from Macquarie Commodities Trading US, for a total cost of more than $411 million, the department said.

SINGAPORE CASH DEALS

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PRICES

CASH ASIA CLOSE Change Prev Close RIC

OSN Naphtha CFR Japan M1 644.75 -13.00 657.75

($/mt)

OSN Naphtha CFR Japan M2 642.00 -13.50 655.50

($/mt)

OSN Naphtha Diff ($/mt) 2.75 0.00 2.75 <NAF-TYO-DIF

Naphtha Netback FOB Sing 69.64 -1.39 71.03

($/bbl)

Naphtha Diff FOB Sing 0.40 0.00 0.40 <NAF-SIN-DIF

Naphtha-Brent Crack 115.25 2.60 112.65 <NAF-SIN-CRK

($/mt) >

Gasoline 97 ($/bbl) 78.54 -3.40 81.94

Gasoline 95 ($/bbl) 78.10 -3.40 81.50

Gasoline 92 ($/bbl) 73.60 -3.40 77.00

Gasoline crack ($/bbl) 3.00 -1.32 4.32 <GL92-SIN-CR

For a list of derivatives prices, including margins, please double click the

RICs below.

Brent M1

Naphtha CFR Japan M1 <NACFRJPSWMc1

Naphtha CFR Japan M1/M2 <NACFRJPSDMc1

Naphtha CFR Japan M2 <NACFRJPSWMc2

Naphtha Japan-Sing <NAPTC4SPDMc1

Netback M1 >

Naphtha Japan-Sing <NAPTC4SPDMc2

Netback M2 >

Naphtha FOB Sing M1 <NAFOBSGSWMc1

Naphtha FOB Sing M1/M2 <NAFOBSGSDMc1

Naphtha FOB Sing M2 <NAFOBSGSWMc2

Naphtha Cracks M1 <NACFRJPCKMc1

East-West Naphtha M1

East-West Naphtha M2

NWE Naphtha M1

NWE Naphtha M1/M2 <NAPCNWEASMc1

NWE Naphtha M2

Crack NWE Naphtha-Brent <NAPCNWEACMc1

M1 >

Crack NWE Naphtha-Brent <NAPCNWEACMc2

M2 >

*Sing refers to

Singapore

(Reporting by Haridas; Editing by Vijay Kishore)

((Haridas.X@thomsonreuters.com;))

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Asia Naphtha/Gasoline-Gasoline crack reaches one-year low, naphtha margins climb

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