Asia's naphtha price fell to a near two-week low on Monday, dragged down by lower Brent crude, while cracks were at a three-session high with tighter supplies seen. Spot deals appeared thin on the surface as an annual oil event in Singapore has drawn buyers and sellers away but deals will be sealed privately. "Some customers have not completed their purchases for first-half October arrival, and they will do so privately during the oil event," said a trader.
European exports to Asia are still choked off as stronger demand in the West means it is not lucrative for traders to send the cargoes eastwards. Gasoline cracks fell to a four-session low after reaching more than a two-year high in the previous session. But current values above $12.00 a barrel are almost double the average of this year so far due to tight prompt supplies and strong seasonal demand.
Formosa needing time to restore output at its 540,000 barrels per day (bpd) refinery which was completely shut in end July following a fire at a secondary unit had exacerbated the supply woes. Saigon Petro have yet to buy 10,000 tonnes of gasoline for early October arrival after it rejected offers at above $4.00 a barrel to Singapore quotes on a cost-and-freight (C&F) basis last week.