Asia Naphtha/Gasoline-Gasoline margins reach two-week high; naphtha backwardation narrows

Reuters11-05 17:52

SINGAPORE, Nov 5 (Reuters) - Asia's gasoline margins climbed on Tuesday to more than a two-week high as 750,000 barrels of the benchmark grade of octane exchanged hands at the closing window.

The crack rose to $6.02 per barrel over Brent crude, its highest since Oct. 18.

Saudi Aramco emerged as the biggest seller yet again, as it sold 400,000 of 92-octane gasoline at the end of the trading day.

In naphtha, the margins slipped to more than a week low to $111.40 per metric ton over Brent crude, its lowest since Oct. 25.

The backwardation between the second-half December and the second-half January narrowed to $6.25.

Regional traders shared concerns that despite heading into the winter season, they do not expect the depressed margins to pick up for the time being.

NEWS

Oil prices traded in a narrow range on Tuesday ahead of what is expected to be an exceptionally close U.S. presidential election, after rising more than 2% in the previous session as OPEC+ delayed plans to hike production in December.

Saudi Arabia logged a budget deficit of 30 billion riyals ($8 billion) in the third quarter, more than half of the country's total deficit so far this year, as lower oil prices weighed on revenue and spending surged.

Trading firms will deliver about 5 million barrels of Middle East crude oil to the Shanghai International Energy Exchange (INE) this month, an unusually large volume, after domestic prices rose against global benchmark Brent, trade sources said.

SINGAPORE CASH DEALS

Twelve gasoline deals and two naphtha trades.

PRICES

CASH ASIA CLOSE Change Prev Close RIC

OSN Naphtha CFR Japan M1 675.25 -0.25 675.50

($/mt)

OSN Naphtha CFR Japan M2 669.00 0.00 669.00

($/mt)

OSN Naphtha Diff ($/mt) 6.25 -0.25 6.50 <NAF-TYO-DIF

Naphtha Netback FOB Sing 73.03 0.02 73.01

($/bbl)

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

Naphtha-Brent Crack 111.40 -4.53 115.93 <NAF-SIN-CRK

($/mt) >

Gasoline 97 ($/bbl) 86.24 1.70 84.54

Gasoline 95 ($/bbl) 86.80 1.70 85.10

Gasoline 92 ($/bbl) 81.20 1.70 79.50

Gasoline crack ($/bbl) 6.02 1.13 4.89 <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 margins reach two-week high; naphtha backwardation narrows

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