SINGAPORE: The Asian naphtha margin climbed to a seven-month high on Thursday as demand continued to be firm in the region, with deals done at higher levels, traders said.
South Korea's Lotte Chemical bought up to 27,500 tonnes of naphtha for delivery in the second half of December at a premium of about $2 a tonne to Japan quotes, they said.
This is a big jump from previous tenders, they added.
"Demand recovery is in full swing with no troubled crackers in the region," one North Asian trader said, adding that some of this could be attributed to the Colonial Pipeline blast in the United States.
US energy officials sought to determine the extent of gasoline shortages on Wednesday, two days after the fatal blast in Alabama shut a crucial supply pipeline to the East Coast, as retail gasoline prices inched higher in southeastern states.
Gasoline was also supported by spot demand from Pakistan State Oil, trade sources said.
TENDERS:
- Qatar International Petroleum Marketing Company, or Tasweeq, offered 50,000 tonnes of full-range naphtha and 25,000 tonnes of pearl gas-to-liquid (GTL) naphtha. The cargoes will load from Ras Laffan Dec. 22-26. The tender closes on Nov. 15 and is valid until Nov. 16.
- Pakistan State Oil is seeking 10 cargoes of 92-octane gasoline, each of about 55,000 tonnes, for delivery from Dec. 25 to Feb. 28. The tender closes on Nov. 30 and is valid until Dec. 9.
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