Asian oil markets largely consolidate gains
London (Quantum Commodity Intelligence) –Middle East crude oil prices held on to most of the previous-week's gains Monday, although drifted slightly lower as COVID-19 concerns re-emerged after the run of strong oil and economic data last week.
Dubai cash for June delivery was assessed at $64.80/b on April 19 (16.30 Singapore time), down $0.30/b from Friday's Singapore close, while DME Oman futures for June settled $64.97/b at the Asian close, down $0.29/b. Market structure was little changed, with front-spread backwardation at around $0.50/b.
Cash Brent (BFOE) softened by $0.26/b to $66.80/b versus Friday's Singapore close, while the June Brent/Dubai EFS was assessed little changed at $3.05/b.
In tender news, Taiwan's CPC was heard looking for up to 2-mil barrels of sour crude in June, while Thailand's IRPC was looking for up to 1 million barrels of June sour or medium sour crude.
Products
Product cracks were broadly stable over the weekend, tracking crude lower, although naphtha cracks lost some of Friday's gains.
Three naphtha deals were heard with one 1H July cargo changing hands at $581.50/mt CIF Japan and two cargo spreads changing hands at $2.50/mt and $3/mt from 1H July to 1H June, meaning the 45-day delivery price was pegged at $587/mt.
That left the crack at $96/mt, down $4/mt on the day. Two Japanese buyers were heard seeking offers for 1H June.
Spot gasoline cracks were broadly stable with one deal heard for 92 RON gasoline at $73.70/b FOB Singapore for prompt loading, leaving the spot crack down just 1 cent at $6.75/b.
Further down the curve swaps sunk, leaving the crack around 20 c/b lower at $6.92/b for May and $6.72/b for June.
India's Nayara was heard offering 60,000 mt 92 RON gasoline for May 14-18 dates.
No jet kero deals were heard and the swaps and differential to underlying cash was broadly static down the curve.
Cash and swaps tracked crude lower.
Benchmark diesel cracks were broadly stable for both the spot and the curve, with little interest heard.
Saigon Petro was reportedly seeking volume, but that was for 500ppm. Spot 10ppm cracks were marked at $2.25/b, down 2 cents on the day. The spot price was marked at 70.60/b.
Several fuel oil deals were heard with Marine Fuel 0.5% trading at a $1.50/mt to underlying swaps, with 380cst also trading at a $0.50/mt premium.
Cracks were broadly unchanged and Sri Lanka Ceypetco was heard seeking fuel oil for delivery in 28 days time.