Asia Naphtha Lower, Gas Stays Steady

Naphtha edged down on Monday in correction while gasoline held steady despite lower Indian purchase, traders said.

Indian Oil Corp (IOC) on Friday awarded its tender to buy its second cargo of 25,000-tonnes of 87-octane leaded gasoline for June at over $30 per tonne premium to MidEast naphtha quotes, a source close to IOC said.

The source said the premium was in the low $30s and lower than rumours on Friday of around $38.

The award, on a cost-and-freight (C&F) basis to Mumbai on the west coast for delivery June 26-30, was also much lower than IOCs first purchase in June at $43 per tonne over MidEast naphtha quotes, C&F Bombay, June 18-22, the source said.

 

But it still looks like a good number, said a trader with a major oil company who calculated the netback to $23.25 per barrel FOB (free on board) Singapore or 70 cents per barrel below Singapore 92-octane spot quotes.

The source said there were outstanding gasoline requirements from India as IOCs second June purchase arose from the five-day emergency shutdown on June 2 of the 150,000 barrels-per-day Cochin refinery.