Asia Oil Swaps-Naphtha's Oct/Nov strengthens to over 2-wk high
(For 12-month forward curve, click
SINGAPORE, Oct 1 (Reuters) - Asia's naphtha inter-month spreads strengthened on Monday, with supplies from the West continuing to tighten.
The prompt October/November spread climbed $1.25 to a backwardation of $10.25 a tonne, the highest in more than two weeks, according to Reuters data.
Strong gasoline demand in the United States will see more naphtha being reformed into the transport fuel, instead of being sent to Asia.
Western naphtha arbitrage inflows into Asia this month are expected to be around 350,000 tonnes, down from last month's 800,000 tonnes, traders said.
Fundamentals in the fuel oil market continued to soften as Chinese demand for feedstock remained lacklustre on rising supplies.
Besides heavy volumes of Western fuel oil coming into Asia, more supplies were also seen from India. Bharat Petroleum Corp Ltd
issued its second tender to sell an October-loading cargo, bringing total Indian exports in October to around 460,000 tonnes so far.
Gasoil's inter-month spreads rebounded in early trade, but the market is expected to weaken as demand from India and Vietnam has slowed.
Fixed-price swaps for products weakened, except naphtha, with Brent crude
losing 98 cents to $111.61 per barrel by 0430 GMT from Friday's Asian close.
For a full list of swaps trades:
Naphtha CFR Japan's October/November strengthened $1.25 to a backwardation of $10.25 a tonne, while the November/December backwardation was $1.00 higher, at $10.25 a tonne.
The CFR November crack narrowed 95 cents to a discount of $6.30 and the December discount was 85 cents narrower at $6.57 per barrel to Brent crude.
The CFR October swap gained $1.00 to $958.00 per tonne, while the FOB Singapore October swap was up 55 cents to $105.75 per barrel.
Fuel oil's October/November timespread edged down 13 cents to a backwardation of $2.75 per tonne, while the October/November backwardation was 13 cents higher at $2.50 per tonne.
The November crack narrowed 35 cents to a discount of $6.29, while the December was 27 cents wider at a discount of $6.11 per barrel to Dubai crude.
October and November 180-cst fixed-price swaps were valued at $664.50 and $661.75 per tonne respectively, down $3.50-$3.63, or around 0.5 percent.
Gasoil's October/November timespread inched up 4 cents to a backwardation of 53 cents per barrel. The November/December backwardation was 5 cents higher at 55 cents per barrel.
The November crack eased 4 cents to a premium of $19.18, while the December premium was 15 cents lower at $19.20 per barrel to Dubai crude.
October's regrade, the spread between jet fuel and gasoil, eased 5 cents to a premium of $1.55. The November premium was 4 cents lower at $1.15 per barrel.
October and November fixed-price contracts were at $127.81 and $127.28 per barrel respectively, down 89-93 cents, or around 0.7 percent. PRODUCTS Price Change Pct Change OCTOBER naphtha 105.65/105.85 0.55 0.52 NOVEMBER naphtha 104.30/104.50 0.45 0.43 OCTOBER naphtha 957.75/958.25 1.00 0.10 NOVEMBER naphtha 947.50/948.00 -0.25 -0.03 OCTOBER gasoil 127.71/127.91 -0.89 -0.69 NOVEMBER gasoil 127.23/127.33 -0.93 -0.73 OCTOBER fuel oil 664.25/664.75 -3.63 -0.54 NOVEMBER fuel oil 661.50/662.00 -3.50 -0.53 Product Price Change OCTOBER regrade 1.50/1.60 -0.05 NOVEMBER gasoil crack 19.08/19.28 -0.04 OCTOBER 180/380 cst 12.00/12.50 -0.13 NOVEMBER fuel oil crack -6.39/-6.19 0.35 NOVEMBER jet fuel crack 20.23/20.43 -0.08 NOVEMBER naphtha crack -6.40/-6.20 0.95 Inter-month spread Mean Prev Change OCTOBER/NOVEMBER naphtha 1.35 1.25 0.10 OCTOBER/NOVEMBER naphtha (CFR 10.25 9.00 1.25 Japan) OCTOBER/NOVEMBER gasoil 0.53 0.49 0.04 OCTOBER/NOVEMBER fuel oil 2.75 2.88 -0.13
(Reporting by Lee Yen Nee; Editing by Clarence Fernandez)
Keywords: MARKETS SWAPS/ASIA