SINGAPORE: Asia's naphtha crack edged down 45 cents to a two-session low of $60.50 a tonne on Thursday but gasoline crack rebounded from a four-session low to reach $9.30 a barrel, the highest since June 13.
- Falling stocks and expectations of a strong summer driving season in the US gave the Asian gasoline market support.
* STOCK LEVELS: Singapore's onshore light distillates stocks, which comprise mostly gasoline and blending components for the fuel, dropped 8.26 percent or 943,000 barrels to more than an eight-month low of 10.47 million barrels in the week to June 21, official data showed.
- US gasoline stocks fell last week 578,000 barrels, compared with analysts' expectations for a 443,000-barrel gain, the Energy Information Administration said.
- Gasoline demand in the US is expected to be firm, with the American Automobile Association (AAA) projecting that a record 37.5 million people will drive 50 miles (80 km) or more from home during the holiday period that stretches from June 30 to July 4.
- That would break last year's record of 36.5 million, and mark a fourth consecutive year of increased motor travel for the Independence Day holiday, AAA said.
NAPHTHA TENDERS: Indian Oil Corp (IOC) sold up to 15,000 tonnes of naphtha for July 10-12 loading from Haldia to western trader Glencore but the price was not known, traders said.
- They added that Reliance Industries has sold 55,000 tonnes of naphtha for July 22-24 loading from Sikka to an Asian trading house at premiums close to $9 a tonne to Middle East quotes on a free-on-board (FOB) basis.
- Reliance has previously fetched an average of close to $9.60 a tonne premium for three 55,000-tonne cargoes lifting from Sikka in June.
- Separately, Malaysia-based Hengyuan sealed its first deal to sell up to 48,000 tonnes of light naphtha to an oil major after acquiring a stake in Shell Refining Company.
- The fuel, most likely to be used as a gasoline blendstock, was sold at a discount of about $15 a tonne to Japan quotes on a FOB basis.
- Abu Dhabi in the meantime was looking to sell 50,000 tonnes of naphtha in the spot market for second-half July loading.
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