Asia’s gasoline paper market structures eased for a second straight session against a backdrop of cautious trading sentiment amid volatile crude markets, though window activity was slightly upbeat.

Paper market structures continued weakening, with the price backwardation easing further. Cash markets, however, were still firm given earlier front-month support from the demand perspective, some trade sources said.

Refining margins (GL92-SIN-CRK) fell further to $13.7 a barrel, nearly a two-month low, with some fixed price discussion levels slightly lower from the previous session.

For naphtha, refining margins also continued its decline for a second straight session to around $89 per metric ton. (NAF-SIN-CRK)

Meanwhile, regional buyers in southeast Asia such as PCS started their purchase for February arrivals ahead of the holiday season, with discussions underway.

The Singapore-based cracker operator sought for around 25,000 metric tons of naphtha for arrival first-half February via a tender that closes today.

Markets were still weighed on by talks of arbitrage arrivals for the next one month, will spillovers expected to go into January due to shipment delays.

NEWS

– Oil and gas major BP BP. has appointed Meg O’Neill, the head of Australia’s Woodside Energy WDS, as its next CEO to lead its effort to boost profits and refocus on oil and gas after a detour into renewables.
– China’s exports of refined oil products dropped 2.2% year-on-year in November but rose 13.3% from the previous month, customs data showed on Thursday.

INVENTORIES

– U.S. crude stocks fell while gasoline and distillate inventories rose last week as refining activity climbed, the Energy Information Administration said on Wednesday.
– Singapore’s light distillates stocks were at 17-week highs of 15.06 million barrels in the week of December 17, official government data showed on Thursday.

SINGAPORE CASH DEALS

– No naphtha deal, one gasoline deal
Source: Reuters