August 21, 2012 / 11:28 AM / in 5 years

Asia Naphtha/Gasoline-Naphtha premiums up on tight supply

SINGAPORE, Aug 21 (Reuters) - Asian naphtha premiums
increased slightly on expectations of tighter supplies in
October due to limited European cargoes arriving in Asia.     
    India's Bharat Petroleum Corp (BPCL) has sold naphtha
cargoes for loading in the last quarter of the year at firmer
premiums than earlier cargoes, traders said. 
   The company sold 35,000 tonnes of naphtha for Oct. 1-15
loading to Total at a premium of about $25 a tonne above Middle
East quotes on a free-on-board (FOB) basis. 
   It also sold its November and December lots to Marubeni at
premiums of $26.50 and $28.50 a tonne respectively, traders
said. 
   All three cargoes are to be loaded from BPCL's Mumbai port. 
   BPCL last sold an Aug. 28-30 loading naphtha cargo to Shell
at a premium of $24-25 a tonne above Middle East quotes. 
   Curbing the hike in premiums, however, was news that Japan's
Mitsui Chemicals Inc shut a naphtha cracker at its 
Ichihara plant in Chiba, east of Tokyo, with an ethylene making
capacity of 612,000 tonnes per year, because of problems with an
electrical system, a company spokesman said. 
    The company has been investigating the cause of the
problems, which cut power supply from Tokyo Electric Power Co
 at 1:42 a.m. on Tuesday (1642 GMT on Monday). It is not
yet clear how long it will take to restart the cracker, the
spokesman said. 
    
    * GASOLINE DEMAND MIGHT DECREASE
    Vietnam's sole Dung Quat oil refinery has reached 100
percent capacity after restarting last week, the chief executive
of the refinery operator said.  
   The plant will start selling oil products to domestic
distributors on Friday, said Nguyen Hoai Giang, chief executive
of Binh Son Refining and Petrochemical Co, which operates the
refinery.  
    This will likely reduce gasoline imports slightly, though
Saigon Petro has a spot requirement for September.
    The company is seeking either 10,000 tonnes of 95-octane
gasoline for delivery into Catlai over September 21-25. 
    It will select which grade to buy when the tender closes on
Aug. 23, an industry source said. 

    * SINGAPORE CASH DEALS: Three deals, with two on gasoline
and one on naphtha.     
    
 LIGHT DISTILLATES                                                                     
 CASH ($/T)                   ASIA CLOSE       Chang  %       Prev      RIC
                                                      Change  Close     
 OSN Naphtha CFR Japan M1              957.00   0.50    0.05    956.50  NAF-1H-TYO
 OSN Naphtha CFR Japan M2              954.00   1.00    0.10    953.00  NAF-2H-TYO
 OSN Naphtha Diff                        3.00  -0.50  -14.29      3.50  NAF-TYO-DIF
 Naphtha Netback FOB Sing              104.13   0.05    0.05    104.08  NAF-SIN
 Naphtha Diff FOB Sing                   0.28   0.10   55.56      0.18  NAF-SIN-DIF
 Naphtha-Brent  Crack                   98.03  -3.25   -3.21    101.28  NAF-SIN-CRK
 Gasoline 97                           135.05  -0.85   -0.63    135.90  GL97-SIN
 Gasoline 95                           129.15  -0.85   -0.65    130.00  GL95-SIN
 Gasoline 92                           125.86  -0.85   -0.67    126.71  GL92-SIN
 Gasoline crack                         11.33  -1.35  -10.65     12.68  GL92-SIN-CRK
                                                                                       
 SWAPS  ($/T)                 ASIA CLOSE       Chang  %       Prev      RIC
                              (0830 GMT)              Change  Close     
 Brent M1                              114.53   0.45    0.39    114.08              
 Naphtha CFR Japan M1                  951.00  -1.50   -0.16    952.50                
 Naphtha CFR Japan M1/M2                 2.75  -1.00  -26.67      3.75                
 Naphtha CFR Japan M2                  948.25  -0.50   -0.05    948.75                
 Naphtha Japan-Sing Netback             15.90  -2.40  -13.11     18.30                
 M1                                                                     
 Naphtha Japan-Sing Netback             17.20  -1.40   -7.53     18.60                
 M2                                                                     
 Naphtha FOB Sing M1                   103.90   0.10    0.10    103.80                
 Naphtha FOB Sing M1/M2                  0.45   0.00    0.00      0.45                
 Naphtha FOB Sing M2                   103.45   0.10    0.10    103.35                
 Naphtha Cracks M1                      -9.17  -0.51    5.89     -8.66                
 East-West Naphtha M1                    5.13  -2.37  -31.60      7.50              
 East-West Naphtha M2                    8.50  -1.50  -15.00     10.00              
 NWE Naphtha M1                        945.87   0.87    0.09    945.00               
 NWE Naphtha M1/M2                       6.12  -0.13   -2.08      6.25                
 NWE Naphtha M2                        939.75   1.00    0.11    938.75               
 Crack NWE Naphtha-Brent M1            -10.11  -0.34    3.48     -9.77                
 Crack NWE Naphtha-Brent M2            -10.04  -0.29    2.97     -9.75                
 *Sing refers to Singapore                                                             
 
 (Reporting by Jessica Jaganathan; editing by James Jukwey)

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