Asian oil markets follow US higher, gasoline cracks rise on US data
London (Quantum Commodity Intelligence) – Middle East crude oil prices rallied strongly Thursday, following the gains in Europe and the US, which came after EIA figures showed a near 6-million barrel draw on US crude inventories in the week ending April 9.
Dubai cash for June delivery was assessed at $64.15/b on April 15 (16.30 Singapore time), up $1.61/b from Wednesday's Singapore close, while DME Oman futures for June settled $64.32/b at the Asian close, up $1.62/b.
In the cargo market, traders were still waiting on results of Qatar's Al Shaheen tender and SOMO's Basra Medium, while Chinese independent refiner was heard buying Middle East grades including Upper Zakum.
Cash Brent (BFOE) strengthened $1.62/b to $66.17/b versus Wednesday's Singapore close, while the June Brent/Dubai EFS edged up to above $3.12/b.
Products
Three physical 92 RON gasoline cargoes were heard traded on Thursday, with prompter loading dates at $72.80/b FOB Singapore, rising to $73.10/b for later dates.
The assessment of $73.10/b equated to a $0.44/b premium to the underlying swap and pushed spot cracks versus cash Brent to a seven-day high of $7.35/b.
The rally was driven by a lower than expected build in US stocks.
Naphtha swaps tracked crude higher, with May rising $13/mt to $570/mt and balmo from $560/mt on Wednesday to $573/mt on Thursday.
The spot crack (45-day delivery to Japan) versus cash Brent rose just $0.62/mt to $91.97/mt.
A US stock draw versus an expected build did little for gasoil cracks in Asia, with the 10ppm spot crack versus cash Brent falling slightly.
One physical deal as heard at a $0.20 discount to May swaps.
In the jet kero market, it was another barren day for spot trades and cracks eased marginally in line with diesel.
The differential to the 10ppm spot assessmnent, however, continued to narrow.
Marine Fuel traded in the spot market at a $1.75/mt premium to underlying swaps, up $0.50/mt on the day. HSFO swap premiums of $1/mt, meanwhile, flatlined and the flat prices rose in line with crude.