Asian crude prices continue upwards, naphtha cracks rebound on gasoline
London (Quantum Commodity Intelligence) –Middle East crude oil prices continued the week-long rally Friday, rising to fresh one-month highs on optimism over the demand recovery and strong macro economic indicators, including China's year-on-year GDP increase of 18%.
Dubai cash for June delivery was assessed at $65.10/b on April 16 (16.30 Singapore time), up $0.95/b from Thursday's Singapore close, while DME Oman futures for June settled $65.26/b at the Asian close, up $0.94/b.
In the physical markets, Qatar's Al Shaheen tender for three cargoes was heard awarded at premiums of around $1.20/b, although factoring in the Dubai M1-M3 backwardation values Al Shaheen at near-parity to Dubai.
Surgut's ESPO tender for five June-loading cargoes were heard aswarded at $2.25/b to $2.50 over Dubai.
Cash Brent (BFOE) strengthened $0.89b to $67.06/b versus Thursday's Singapore close, while the June Brent/Dubai EFS was assessed above $3/b for the fifth successive day, although slightly lower at $3.06/b.
Products
Friday saw another liquid day for product trading with a flurry of gasoline deals consolidating gains made earlier in the week on the back of bullish US data.
RON 92 FOB Singapore traded at $73.90/b for May 1-5 dates, with five 95 RON trades at $73.90-$76.48/b for dates between May 1-16.
Spot cracks fell back after a strong showing Thursday, while May cracks versus cash July Brent remain above $7/b - a near two week high.
One naphtha deal was heard for second half June at $590/mt, yet with a steep backwardation in the market, this was valued $3/mt higher for prompter delivery.
Swaps marched $12/mt higher, far outstripping gains seen in crude, to push May cracks to the highest in a week at $92.03/mt.
Two 10ppm diesel deals were heard for early May loading at a price of April balance month swaps -$0.15/b cents. The cash differential though was barely changed leaving cracks stable.
Again, there was a dearth of trade in the jet kero market, leaving the cash differential static at -$0.60/b versus the underlying swaps curve.
With swaps tracking crude, cracks were largely unchanged on the day with May versus July cash Brent at $2.64/b versus $2.55/b a day earlier.
Flat prices for fuel oil firmed alongside crude on the day to leave cracks largely unchanged.
Three deals were heard with 380cst and 180cst priced at a $0.50/mt premiums to the underlying swaps curve.