Asia Naphtha/Gasoline-Crack spreads widen on firm demand

SINGAPORE: Asia's gasoline crack spread hit a two-week high of $9.63 a barrel while naphtha ended the week at a five-session high of $82.83 a tonne, supported by firm demand and low levels of incoming European cargoes.

China's Unipec has resumed issuing supply tenders for spot cargoes after a brief absence, traders said, and may have bought a cargo for December delivery after a few attempts but this could not immediately be confirmed.

China turned a net importer of naphtha more than five years ago, with its monthly import volume hitting a peak of nearly 954,000 tonnes in December last year.

Its monthly imports eased to below 450,000 tonnes in September this year and eyes are now on its spot demand volumes.

Over in the Philippines, JG Summit is to buy a total of 420,000 tonnes of naphtha for 2017 delivery to Batangas.

The purchase tender has closed but not yet been awarded, traders said.

European cargoes flowing to Asia in the meantime were kept at low levels and this helped tightened supplies.

Refinery capacity shut in for maintenance work in Europe and Russia remained relatively high in November at 1 million barrels per day.

OTHER NEWS: Shut due to a fire, JX Nippon Oil & Energy Corp will restart the 21,200 barrels per day No. 3 reformer unit at its Kashima refinery on Friday but the company did not say when a 63,500 bpd condensate splitter will restart.

TENDERS: India's Reliance has sold a naphtha cargo for early December loading from Sikka recently to Total, traders said, adding that they estimated premium should be in the low teens level to Middle East quotes on a free-on-board (FOB) basis.

The refiner was also looking to sell up to 35,000 tonnes with a minimum paraffin content of 70 percent and up to 23,000 tonnes but with a minimum paraffin content of 78 percent.