Asia’s gasoline market movements were mixed through the week despite upbeat trading activity on window, with naphtha market liquidity slightly thinner in comparison.

Octane-92 gasoline refining margins fell further to $13.31 a barrel, remaining at two-month lows, with paper market structures also declining again.

On the paper front, the backwardated market structure eased throughout amid cautious trading sentiment while crude had a volatile price performance this week.

Meanwhile on the physical cargo front, some traders still held on the positive expectations amid the recent firm demand fundamentals from some regional buyers.

Some replenishment of gasoline blendstocks in the week were also prevalent, according to two trade sources, with blenders willing to pay higher premiums given they had cargo deliveries to fulfil.
Meanwhile, Australia’s Viva Energy announced the commissioning of its ultra low sulphur gasoline production facility at its Geelong refinery.

Naphtha spot activity was slightly quiet this week, although some end-users did start their second-half January and first-half February procurements before the holiday season.

No deals were done on the trading window for the whole of this week.

Japan’s Idemitsu Kosan and Mitsui Chemicals agreed to consolidate their ethylene cracker operations at Chiba via a joint venture firm Chiba Chemicals Manufacturing by July next year.

Prices of the petrochemical feedstock could remain supported from firm replacement product LPG prices in the near-term, despite mixed demand, several trade sources say.

NEWS
– Venezuela on Thursday authorized two very large crude carriers (VLCC) to set sail for China, according to two sources familiar with Venezuela’s oil export operations, which would be only the second and third supertankers to depart the country since the U.S. seized a ship carrying Venezuelan oil last week.
– The United States imposed sanctions on Thursday on 29 vessels and their management firms as Washington targeted Tehran’s “shadow fleet”, which it says exports Iranian petroleum and petroleum products.
– Oil prices ticked down on Friday and were set to close lower for a second straight week, as rising prospects of a Russia-Ukraine peace deal offset concerns over supply disruptions from a blockade of Venezuelan oil tankers.

INVENTORIES
– Refined oil products stocks independently held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by 1% on the week to their highest since mid-October, data from Dutch consultancy Insights Global showed on Thursday.

SINGAPORE CASH DEALS
– No naphtha deal, one gasoline deal
Source: Reuters