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Asia Naphtha/Gasoline-Gasoline crack stays under pressure

SINGAPORE, Jan 16 (Reuters) - Asia's gasoline crack was at a discount of 32 cents a barrel to Brent crude on Wednesday, 1 cent higher than the previous session which was near a one-week low on the back of an unyielding glut. - The bearish fundamentals have dragged the average gasoline profit margin for the first-half of January to about 45 cents a barrel, the lowest for the period since 2009. <GL92-SIN-CRK> - The situation could get worse as new refineries are coming up this year in Malaysia and China and these could add some 235,000 barrels per day of gasoline to the market although not all of it would be exported. "We have large volumes of refining capacity geared towards gasoline or naphtha production coming online in the East of Suez this year," said Michael Dei-Michei, head of research at consultancy JBC Energy. "For that reason we expect gasoline supply growth to outpace demand growth to the tune of about 200,000 bpd on average in 2019," said Dei-Michei.

* NAPHTHA: Asia's naphtha crack climbed 3.6 percent to a two-week high of $44.85 a tonne. - South Korea's LG Chem emerged to buy naphtha for first-half March delivery, making this the first tender in South Korea for the purchase of March cargoes. - The petrochemical maker could have paid premiums of more than $1 but below $2 a tonne to Japan quotes on a cost-and-freight (C&F) basis, traders said. - This was a sharp jump when compared to a discount of $5 LG Chem had paid on Dec. 2 for cargoes scheduled for first-half January delivery.

* REFINERY NEWS: Japanese refiner Fuji Oil Co is likely to shut all the refining units at its sole 143,000 barrels-per-day (bpd) Sodegaura oil refinery in mid- or late May for a scheduled maintenance which could last until mid-June.

* CASH DEALS: One deal each on naphtha and gasoline.


CASH ($/T) ASIA CLOSE Change % Change Prev

Close RIC

OSN Naphtha CFR Japan M1 501.00 12.75 2.61

488.25 <NAF-1H-TYO>

OSN Naphtha CFR Japan M2 496.75 13.00 2.69

483.75 <NAF-2H-TYO>

OSN Naphtha Diff 4.25 -0.25 -5.56

4.50 <NAF-TYO-DIF>

Naphtha Netback FOB Sing 52.90 1.42 2.76

51.48 <NAF-SIN>

Naphtha Diff FOB Sing 0.65 0.15 30.00

0.50 <NAF-SIN-DIF>

Naphtha-Brent Crack 44.85 1.57 3.63

43.28 <NAF-SIN-CRK>

Gasoline 97 64.00 1.65 2.65

62.35 <GL97-SIN>

Gasoline 95 62.45 1.65 2.71

60.80 <GL95-SIN>

Gasoline 92 60.50 1.50 2.54

59.00 <GL92-SIN>

Gasoline crack -0.32 0.01 -3.03

-0.33 <GL92-SIN-CRK>

For a list of derivatives prices, including margins, please double

click the RICs below.

Brent M1

Naphtha CFR Japan M1

Naphtha CFR Japan M1/M2

Naphtha CFR Japan M2

Naphtha Japan-Sing Netback M1

Naphtha Japan-Sing Netback M2

Naphtha FOB Sing M1

Naphtha FOB Sing M1/M2

Naphtha FOB Sing M2

Naphtha Cracks M1

East-West Naphtha M1

East-West Naphtha M2

NWE Naphtha M1

NWE Naphtha M1/M2

NWE Naphtha M2

Crack NWE Naphtha-Brent M1

Crack NWE Naphtha-Brent M2

*Sing refers to Singapore

(Reporting by Seng Li Peng, editing by Louise Heavens)