Asia oil/products: Crude prices retreat, cracks fall
London (Quantum Commodity Intelligence) –Middle East crude prices eased back along with global benchmarks Tuesday, although concerns that China's clampdown on independent refiners could reduce demand also played on sentiment.
Dubai cash for August delivery was assessed at $69.30/b on June 8 (1630 Singapore time), down $0.70/b from Monday's Singapore close, while DME Oman futures for August settled $69.60/b at the Asia close, down 0.75/b.
Middle East spot activity for August is yet to get going, but traders will be looking for indications of buying appetite from the key Chinese and Indian markets.
State-run Chinese refiner PetroChina has been told to stop trading crude oil import quotas with independent refineries in a bid to slow down fuel production and protect refining margins, which may lead to a 3% drop in crude oil imports, according to reports.
Cash Brent (BFOE) for August was assessed at $70.90/b, down $0.65/b from the Monday's Asian close, while August Brent/Dubai narrowed was little changed at $1.60/b.
Products
Fuel oil and light end cracks were weaker amid softer crude, while distillate cracks flatlined.
Gasoline cracks softened on Tuesday, with spot cracks for RON 92 at $4.80/b, down $0.42/b on the day and in line with paper cracks. No deals were heard and spot tonnes were assessed at $75.70/b FOB Singapore RON 92, down $1/b on the day.
Naphtha cracks, buoyed by petchem demand, remained firm. Spot tonnes were assessed at $629.25/mt CIF Japan, down $5.75/mt on the day amid thin trade. Spot crack remained firm at $109.55/mt.
Jet kero was asssed at $73.64/b FOB Singapore, down $0.60/b on the day and in line with weaker crude. Cash differentials were static at a discount of $0.40/b, leaving the crack just marginally firmer at $2.74/b.
Diesel cracks were broadly stable, with flat prices falling $0.48/b to $76.95/b FOB Singapore for 10ppm. That left the 10ppm crack for spot at $6.05/b, up $0.17/b on the day and the highest level for almost two weeks. 500 ppm was marked at $74.47/b, down $0.66/b on the day, with the crack flatlining at $3.57/b.
Fuel oil cracks were down on the day. One deal for marine fuel 0.5% was heard at a $0.50/mt discount to the swaps curve leaving spot tonnes assessed at $510.75/mt FOB Singapore, down $5.75/mt on the day. The crack was marked at $3.12/b, down $0.19/b on the day.
Higher sulfur cracks also fell, with 380cst easing $6.75/mt on the day to $388.25/mt FOB Singapore and the crack was -$9.76/b, down $0.41/b on the day.
