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Asia and Middle Eastern Gasoline Daily Market Analysis.

Asia and Middle Eastern Gasoline Daily Market Analysis
The Asian gasoline market received a fresh bout of support from the West prior to the Christmas holiday Dec. 24, with Asian gasoline crack spreads rising in mid-morning trade amid a surprise draw in US gasoline inventory data.

• US gasoline stocks fall 1.13 mil barrels: EIA
• Japan’s gasoline supply rises as refineries raise runs
• Vietnam’s Saigon Petro cancels gasoline, gasoil buy tender

The Asian gasoline market received a fresh bout of support from the West prior to the Christmas holiday Dec. 24, with Asian gasoline crack spreads rising in mid-morning trade amid a surprise draw in US gasoline inventory data.
US gasoline stocks fell 1.13 million barrels in the week ended Dec. 18 to 237.75 million barrels, Energy Information
Administration data released late Dec. 23 showed.
The American Petroleum Institute had earlier forecast a 224,000-barrel build, and analysts surveyed by Platts were expecting a 1.4 million-barrel increase, Platts reported earlier.
The stock draw was attributed to a slight uptick in gasoline demand in the US, with Apple Mobility data showing US driving activity at a four-week high in the week, and climbing for a second straight week.
Implied demand rose for a second straight week to 8.02 million b/d, up 422,000 b/d from the week ending Dec. 4, the EIA data showed.
The US RBOB/Brent crack at 0230 GMT as such was up 3.86% on the day at $6.65/b.
Asian gasoline crack spreads tend to trace movements in the US RBOB/Brent crack, with support from the latter
typically injecting strength into the former.
The front month January FOB Singapore 92 RON gasoline crack against Brent swaps was seen rising for the third straight day to be pegged by brokers early Dec. 24 in the range of $3.10-$3.20/b, around 5% higher than
the day before.
The rise in the paper markets flowed down to the physical front, with the FOB Singapore 92 RON gasoline crack against front-month ICE Brent crude futures seen 5.17% higher on the day at between $3.00/b and $3.10/b at 0230 GMT Dec. 24. It was last assessed higher Dec .18 at $3.20/b. At the 0830 GMT close of Asian trade Dec. 23, the derivative and physical crack spreads were assessed at $3/b and $2.90/b respectively, Platts data showed.
Despite the strength in early Dec. 24 trading, further weakness to fundamentals continued to emerge in Asia.
On the supply side, Japanese gasoline exports over Dec. 13-19 surged to 760,096 barrels from 97,772 barrels the week before, Petroleum Association of Japan data released Dec. 23 showed.
The rise in exports came as refinery crude runs in Japan continue to edge higher, hitting 81% in the week ended Dec.
19 after touching 80% for the first time in 37 weeks the week before.
The week-on-week increases in Dec. 13-19 refinery runs and crude throughput came as refiner ENEOS restarted the 95,200 b/d No. 2 crude distillation unit at its 200,200 b/d Mizushima-B plant on Dec. 15.
Japan’s gasoline output rose 14.2% on week to 5.93 million barrels as a result of the increase in refinery runs, PAJ data showed.
On the demand side, Vietnam’s Saigon Petro was heard to have canceled a tender seeking a combined 10,000 mt of 0.05% sulfur gasoil and 10,000 mt of 95 RON gasoline for delivery in January after deeming the offers received too high, according to market sources.

 

Platts


Dec 26, 2020 00:52
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