GASOLINE

In Northeast Asia, the differential for MR-size cargoes of 92RON gasoline basis was unchanged.

Spot sales were seen from China after the National Foundation Day holidays were over. On Monday, China National Offshore Oil Co (CNOOC) issued a sell tender for an MR-size cargo of 92RON gasoline with an oxygen content of up to 0.5% to be loaded on Nov 10-11 from South China. The tender was scheduled to close on Oct 13. On the other hand, no spot purchases from Southeast Asia including Indonesia and Vietnam were reported.

NAPHTHA

The differential on an FOB Middle East basis felt down. A market source view that the differential for naphtha loading from the Middle East was down to a premium of $11.50-13.50/mt to Middle East quotations, judging from the recent softness in paraffinic grade prices on a CFR Northeast Asia basis. On the other hand, the term contract starting from December conducted by Kuwait Petroleum Corporation (KPC) was concluded at a premium in the mid-$10's/mt to the quotations.

MIDDLE DISTILLATES

The differential for MR-size cargoes of 0.001% sulfur gasoil went up with exports from China seemed to be less than expected. On Thursday, CPC Co in Taiwan sold 300,000bbl of 0.001% sulfur gasoil loading on Nov 11-20 through a tender at a discount of 50cts/bbl to Singapore quotations on an FOB basis. Meanwhile, although no deals for cargoes loading in China were reported, it was pointed out that cargoes could be traded at a discount of around $1.00/bbl to the quotations on an FOB basis. As reported, several sellers made moves to sell cargoes loading in November from South Korea, no deals had yet to be reported.

FUEL OIL

The differential for MR-size cargoes of 0.5% sulfur fuel oil on an FOB South Korea basis was unchanged as market movements were still slow just after a holiday in South Korea. On the other hand, Formosa Petrochemical Co (FPCC) in Taiwan has been entering into turnround of the 80,000bbl vacuum residue desulfurization (VRDS) unit until Nov 10 since Oct 1. Also, the other one 80,000bbl VRDS unit has not yet restarted from the fire accident in July, so that the two 180,000bbl crude distillation units (CDU) have been stopping. Due to this, production of low sulfur fuel oil was decreasing, and the company was not planning any tenders to sell the fuel loading in October.

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