Asia’s naphtha discussions remained brisk on Tuesday, with a handful of northeast Asian importers seeking first-half February spot deliveries before the holidays begin.

South Korea’s GS Caltex sought at least 25,000 metric tons of naphtha for delivery in first-half February.

A bunch of deals were done mostly within the $3 to $5 per metric ton premium range linked to cost and freight (CFR) Japan price quotes for these first-half February delivery cargoes.

Traders expect prices and spot discussion levels to fluctuate in a narrow range given the mixed market signals. Buyers are likely to only procure their bare minimum requirement given mostly squeezed downstream petrochemical margins, one trader said.

Weakness will likely be capped by firm replacement product LPG prices in the near-term, a second trader added.

Refining margins for the petrochemical feedstock regained some ground, rising to around $81 per metric ton.

Meanwhile, gasoline spot trading activity on the window stayed upbeat, as evidenced by the deals.

Octane-92 gasoline refining margins fell further to $11.6 a barrel.

Markets were mostly cautious to bullish on their next year outlooks given that demand is expected to outpace supply at least in the first half of the year, some traders say.

On tenders, India’s MRPL was looking to sell more octane-95 gasoline loading January 29-30 via a tender that closes December 23. The refiner closed a separate tender to sell 40,000 tons of the same motor fuel yesterday.

INVENTORIES

– U.S. crude oil and distillate stockpiles were expected to have fallen last week, while gasoline inventories likely rose, a preliminary Reuters poll showed on Monday.

NEWS

– Tanker loading in Venezuela dwindled on Monday, with most ships moving oil cargoes only between domestic ports following U.S. action against two more ships and as state-run energy company PDVSA struggles to recover from a cyberattack, according to tracking data and sources.

– Global commodities trader and miner Glencore has agreed to acquire a majority stake in Dutch fuel supplier FincoEnergies for an undisclosed sum, the Dutch company said on Monday.
– Oil prices slipped on Tuesday as traders weighed geopolitical risks against bearish fundamentals, after the U.S. signaled it might sell the Venezuelan crude it has seized while Ukraine’s attacks on Russian vessels and piers heightened fears of supply disruption.

SINGAPORE CASH DEALS

– Two gasoline deals, no naphtha deal
Source: Reuters