SINGAPORE, March 1 (Reuters) - The Asian naphtha price ended the week at its lowest in about
1-1/2 months at $972.50 a tonne, while its margin dived to a 3-1/2 week low of $139.25 a tonne
as buyers held back all week in hopes of a softer market ahead.
South Korean buyers were away on Friday, but they have been slow in issuing tenders to buy
April cargoes since the start of the week. Traders remained convinced the market will stay
supported as supplies were not in abundance.
Compared with start of February, the current naphtha margin was still about 7 percent
higher.
"The market is undergoing a correction as South Korean buyers have not bought anything
through open tenders the whole of this week," said a Singapore-based trader.
Eyes are now on purchases for second-half April spot naphtha cargoes, which buyers are
likely to start sourcing from next week.
* GASOLINE CRACK EXTENDS LOSSES
The Asian gasoline margin eased by 3.77 percent to reach $12.50 a barrel, the lowest since
Feb. 5, as value continued to be dragged down by a weaker gasoline outlook in the U.S.
High stockpiles in the U.S. meant Europe is unlikely to be able to release its excess
cargoes to the former.
This has led to high gasoline stocks held independently in the Amsterdam-Rotterdam-Antwerp
(ARA) hub, where inventories rose to a two-year high of 962,000 tonnes in the week ended Feb.
28, data from Dutch oil consultant Patrick Kulsen showed.
High gasoline prices in the United States have proved a draw for European gasoline in recent
weeks but have tumbled over the last few days as speculators have liquidated length in U.S. RBOB
gasoline futures.
Oil traders tend to see the U.S. as a gasoline sink, a good place to move surplus motor fuel
due to strong demand and inadequate local production, but that position is starting to unravel,
said Reuters market analyst Robert Campbell.
* SINGAPORE CASH DEALS: One deal on naphtha and two on gasoline.
- Glencore sold a naphtha spread deal for first-half May/second-half May at $13.50 a tonne
to Trafigura.
- Arcadia bought from Total a 95-octane gasoline for March 20-24 loading at $126.35 a
barrel.
- Arcadia on the other hand sold a 92-octane gasoline cargo for March 16-20 loading to
Gunvor at $123.60 a barrel.
LIGHT DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close
OSN Naphtha CFR Japan M1 972.50 -25.50 -2.56 998.00
OSN Naphtha CFR Japan M2 942.50 -21.50 -2.23 964.00
OSN Naphtha Diff 30.00 -4.00 -11.76 34.00
Naphtha Netback FOB Sing 105.43 -2.84 -2.62 108.27
Naphtha Diff FOB Sing 3.58 -1.99 -35.73 5.57
Naphtha-Brent Crack 139.25 -18.68 -11.83 157.93
Gasoline 97 129.26 0.63 0.49 128.63
Gasoline 95 126.35 0.55 0.44 125.80
Gasoline 92 123.60 -1.40 -1.12 125.00
Gasoline crack 12.50 -0.49 -3.77 12.99
SWAPS ($/T) ASIA CLOSE Change % Change Prev RIC
(0830 GMT) Close
Brent M1 111.09 -0.94 -0.84 112.03
Naphtha CFR Japan M1 943.00 -8.50 -0.89 951.50
Naphtha CFR Japan M1/M2 17.75 -1.25 -6.58 19.00
Naphtha CFR Japan M2 925.25 -7.25 -0.78 932.50
Naphtha Japan-Sing Netback M1 -1.10 -1.75 -269.23 0.65
Naphtha Japan-Sing Netback M2 7.25 -0.50 -6.45 7.75
Naphtha FOB Sing M1 104.90 -0.75 -0.71 105.65
Naphtha FOB Sing M1/M2 2.90 0.00 0.00 2.90
Naphtha FOB Sing M2 102.00 -0.75 -0.73 102.75
Naphtha Cracks M1 -8.28 0.14 -1.66 -8.42
East-West Naphtha M1 14.50 5.75 65.71 8.75
East-West Naphtha M2 14.00 1.25 9.80 12.75
NWE Naphtha M1 928.50 -14.25 -1.51 942.75
NWE Naphtha M1/M2 17.25 -5.75 -25.00 23.00
NWE Naphtha M2 911.25 -8.50 -0.92 919.75
Crack NWE Naphtha-Brent M1 -9.84 0.00 0.00 -9.84
Crack NWE Naphtha-Brent M2 -10.25 0.40 -3.76 -10.65
*Sing refers to Singapore
(Reporting by Seng Li Peng; Editing by Alison Birrane)