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Asia Oil Swaps-Naphtha's Oct/Nov weakens on slowing economy

Wednesday, 3 Oct 2012 | 1:37 AM ET

(For 12-month forward curve, click

)

SINGAPORE, Oct 3 (Reuters) - Asia's naphtha market erased gains on Wednesday, as petrochemical makers stayed on the sidelines over concerns about a slower economy.

The prompt October/November inter-month spread slipped a dollar to a three-session low of $9.00 a tonne in backwardation, according to Reuters data.

A recent hike in prices, supported by strong gasoline demand in the West, has hurt petrochemical margins. Concerns over slower manufacturing activities have also risen, traders said.

Fuel oil's inter-month spreads remained weak on ample supply and lacklustre demand.

The gasoil market, on the other hand, received a boost as a drop in European inventories would see Asian stocks being shipped to the West.

Gasoil's October/November inter-month spread strengthened to a two-week high of 60 cents a barrel in backwardation, Reuters data showed.

Japanese stocks for the week to Sept. 29 fell three percent to 1.73 million kilolitres, data by the Petroleum Association of Japan showed.

Fixed-price swaps for all products weakened, with Brent crude

losing 99 cents to $111.15 per barrel by 0430 GMT from Tuesday's Asian close.

For a full list of swaps trades:

NAPHTHA

Naphtha CFR Japan's October/November lost $1.00 to a backwardation of $9.00 a tonne, while the November/December backwardation was 25 cents higher, at $10.00 a tonne.

The CFR November crack widened 1 cent to a discount of $7.15 and the December discount was 9 cents narrower, at $7.34 per barrel to Brent crude.

The CFR October swap weakened $10.00 to $945.00 per tonne, while the FOB Singapore October swap was down $1.05 to $103.65 per barrel.

FUEL OIL

Fuel oil's October/November timespread edged down 13 cents to a backwardation of $2.25 per tonne, while the October/November backwardation was unchanged at $2.38 per tonne.

The November crack narrowed 27 cents to a discount of $6.48, while December was 26 cents narrower at a discount of $6.17 per barrel to Dubai crude.

October and November 180-cst fixed-price swaps were valued at $661.50 and $659.25 per tonne respectively, down $4.00-$4.13, or around 0.6 percent.

GASOIL

Gasoil's October/November timespread inched up 3 cents to a backwardation of 60 cents per barrel. The November/December backwardation was 4 cents higher at 60 cents per barrel.

The November crack gained 16 cents to a premium of $19.00, while the December premium was 11 cents higher at $19.07 per barrel to Dubai crude.

October's regrade, the spread between jet fuel and gasoil, was unchanged at a premium of $1.65. The November premium was 3 cents higher at $1.25 per barrel.

October and November fixed-price contracts were at $127.50 and $126.90 per barrel respectively, down 70-73 cents, or around 0.6 percent. PRODUCTS Price Change Pct Change OCTOBER naphtha 103.55/103.75 -1.05 -1.00 NOVEMBER naphtha 102.45/102.65 -0.80 -0.77 OCTOBER naphtha 944.75/945.25 -10.00 -1.05 NOVEMBER naphtha 935.75/936.25 -9.00 -0.95 OCTOBER gasoil 127.40/127.60 -0.70 -0.55 NOVEMBER gasoil 126.80/127.00 -0.73 -0.57 OCTOBER fuel oil 661.25/661.75 -4.13 -0.62 NOVEMBER fuel oil 659.00/659.50 -4.00 -0.60 Product Price Change OCTOBER regrade 1.60/1.70 0.00 NOVEMBER gasoil crack 18.90/19.10 0.16 OCTOBER 180/380 cst 11.50/12.00 0.50 NOVEMBER fuel oil crack -6.58/-6.38 0.27 NOVEMBER jet fuel crack 20.15/20.35 0.19 NOVEMBER naphtha crack -7.25/-7.05 -0.01 Inter-month spread Mean Prev Change OCTOBER/NOVEMBER naphtha 1.10 1.35 -0.25 OCTOBER/NOVEMBER naphtha (CFR 9.00 10.00 -1.00 Japan) OCTOBER/NOVEMBER gasoil 0.60 0.57 0.03 OCTOBER/NOVEMBER fuel oil 2.25 2.38 -0.13

(Reporting by Lee Yen Nee; Editing by Clarence Fernandez)

((lee.yennee@thomsonreuters.com)(+65 68703823)(Reuters Messaging: lee.yennee.reuters.com@reuters.net))

Keywords: MARKETS SWAPS/ASIA