September 17, 2012 / 5:48 AM / 5 years ago

Asia Oil Swaps-Naphtha's prompt inter-month spread rebounds

(For 12-month forward curve, click )
    SINGAPORE, Sept 17 (Reuters) - Asia's naphtha market
rebounded in early trade on Monday, with inter-month spreads
strengthening as supplies coming out of Europe are still
    The October/November spread, which turns prompt on Monday,
climbed $1.00 to a backwardation of $8.50 a tonne. Naphtha's
prompt spread has stayed above $8.00 a tonne for four
consecutive weeks, according to Reuters data. 
    Some traders, however, expect the market to ease, as India's
naphtha exports are likely to increase in October, after falling
to their lowest in more than three years in September. 
    In the fuel oil market, the viscosity spread was unchanged
at a 17-month high on amply supply of the 380-censtitoke (cst)
fuel oil. 
    The viscosity spread measures the price difference between
the 180-cst and 380-cst fuel oil. 
    Sentiment in the market has also weakened as higher volumes
of arbitrage cargoes are arriving in the second-half of
    The gasoil market weakened slightly in early trade, but
traders anticipate demand to be stronger as European countries
start to stock up for the winter. 
    Fixed-price swaps for products weakened, with Brent crude
 losing 51 cents to $117.00 per barrel by 0430 GMT from
Friday's Asian close. 
    For a full list of swaps trades: 
    Naphtha CFR Japan's October/November gained $1.00 to a
backwardation of $8.50 a tonne, while the November/December
backwardation was $1.50 higher at $7.50 a tonne.        
    The CFR November crack narrowed 29 cents to a discount of
$8.28 and the December discount was 10 cents stronger at $8.58
per barrel to Brent crude.
    The CFR October swap eased $1.00 to $987.00 per tonne, while
the FOB Singapore October swap was down 65 cents to $107.20 per
    FUEL OIL     
    Fuel oil's October/November timespread eased 25 cents to a
backwardation of $4.00 per tonne, while the October/November
backwardation was unchanged at $3.75 per tonne.  
    The October crack widened 13 cents to a discount of $6.10
and November was 11 cents weaker at a discount of $6.06 per
barrel to Dubai crude.    
    October and November 180-cst fixed-price swaps were valued
at $702.38 and $698.38 per tonne respectively, down $3.00-$3.25,
or 0.4-0.5 percent.
    Gasoil's October/November timespread eased 2 cents to a
backwardation of 36 cents per barrel. The November/December
backwardation was 1 cent down at 32 cents per barrel. 
    The October crack lost 7 cents to a premium of $18.65, while
the November premium was 7 cents lower at $18.95 per barrel to
Dubai crude.
    October's regrade, the spread between jet fuel and gasoil,
dropped 10 cents to a premium of $1.10. The November premium was
also 10 cents lower at $1.05 per barrel.
    October and November fixed-price contracts were at $132.81
and $132.45 per barrel respectively, down 42-44 cents, or around
0.3 percent.
 PRODUCTS                            Price           Change  Pct
 OCTOBER naphtha                     107.10/107.30   -0.65   -0.60
 NOVEMBER naphtha                    106.00/106.20   -0.80   -0.75
 OCTOBER naphtha                     986.88/987.13   -1.00   -0.10
 NOVEMBER naphtha                    978.25/978.75   -2.00   -0.20
 OCTOBER gasoil                      132.76/132.86   -0.44   -0.33
 NOVEMBER  gasoil                    132.40/132.50   -0.42   -0.32
 OCTOBER fuel oil                    702.25/702.50   -3.25   -0.46
 NOVEMBER fuel oil                   698.25/698.50   -3.00   -0.43
 Product                             Price           Change  
 OCTOBER regrade                     1.05/1.15       -0.10   
 OCTOBER gasoil crack                18.55/18.75     -0.07   
 OCTOBER 180/380 cst                 15.25/15.75     0.00    
 OCTOBER fuel oil crack              -6.20/-6.00     -0.13   
 OCTOBER jet fuel crack              19.65/19.85     -0.17   
 NOVEMBER naphtha crack              -8.38/-8.18     0.29    
 Inter-month spread                  Mean             Prev   Change
 OCTOBER/NOVEMBER naphtha            1.10            0.95    0.15
 OCTOBER.NOVEMBER naphtha (CFR       8.50            7.50    1.00
 OCTOBER/NOVEMBER gasoil             0.36            0.38    -0.02
 OCTOBER/NOVEMBER fuel oil           4.00            4.25    -0.25

 (Reporting by Lee Yen Nee; Editing by Clarence Fernandez)
 (; +65 68703823; Reuters

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