Asia naphtha timespreads stabilised amid rangebound spot discussions, while refining margins rebounded slightly and gasoline refining margins remained steady at six-month highs.

Refining margins recouped some losses from the previous session, closing trading on Friday’s at about $84 per metric ton.

Discussions for December cargoes started to trickle in, with at least two of South Korea’s importers securing two-three cargoes at premiums of $3-$5 per metric ton, slightly lower than last month by $3-$5 per ton.

Buying interest eased compared with earlier levels, as petrochemical margins tightened and replacement feedstock liquefied petroleum gas (LPG) offered potentially better profitability, according to multiple regional trade sources.

On the gasoline front, cracks (GL92-SIN-CRK) continue to gain this week, hitting their highest level of nearly $14 a barrel.

Front-month markets were still bolstered by firm fundamentals, though some traders did turn slightly cautious on how long supply tightness can persist.

On the tenders front, Indonesia’s Pertamina sought for two more 100,000-barrel octane-92 gasoline cargoes for delivery October 20-24.

Meanwhile, Taiwan’s Formosa Petrochemical Corp sold some gasoline cargoes via tender on Thursday at premiums of around $2 per barrel, several trade sources said.

INVENTORIES

– Gasoline stocks independently held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell by about 4.6% on the week, data from Dutch consultancy Insights Global showed on Thursday.
– U.S. crude stocks rose more than expected last week as refining crude runs dropped sharply to their lowest point in more than 1-1/2 years, data from the Energy Information Administration showed on Thursday.

REFINERY NEWS

– Nigeria’s Dangote oil refinery has begun the restart process of its gasoline unit and is expected to resume production by Sunday, according to industry monitor IIR.

NEWS

– Western powers have ramped up pressure on Russia’s oil sales amid its war with Ukraine as U.S. President Donald Trump said India would stop buying and Britain imposed sanctions on top Russian oil firms.
– Oil deliveries are being disrupted by congestion at the Belgian Port of Antwerp-Bruges after a harbour pilots’ strike, analysts said, with the port authority counting up to 188 vessels still waiting to berth or depart.
– Oil prices edged lower on Friday, heading for a weekly loss, with uncertainty over global energy supplies after Trump and Russian President Vladimir Putin agreed to meet in Hungary to discuss ending the war in Ukraine.

SINGAPORE CASH DEALS

– No deals for naphtha and gasoline
Source: Reuters