SINGAPORE: Asia’s naphtha crack rose for a second straight session and was near a two-month high of $105.88 a tonne on strong demand while the gasoline crack hit a 1-1/2 month high of $7.05 a barrel in tandem with firmer Nymex gasoline futures.
– Gasoline fundamentals in Asia, however, were leaning on the weaker side because supplies were not lacking, one trader said.
– Although South Korea’s third-largest refiner, S-Oil, made a rare move by seeking gasoline to plug a supply gap because its new gasoline unit has not yet reached optimum throughput, its demand would be shortlived.
– Once the new unit runs smoothly, it would be exporting the new gasoline supplies, adding to supplies China has been pushing out regularly.
– Although China’s gasoline exports in June were down 1.47 percent from May at 1.18 million tonnes, they were 62 percent higher than a year ago.
TENDERS: Kuwait was seeking a 25,000 tonne gasoline cargo for delivery each month from August to October through a tender closing on July 25.
– Separately, it offered a 25,000 tonne full-range naphtha cargo for loading at the end of August through a tender closing on July 24, bringing its total export volumes for next month to 124,000 tonnes versus up to 178,000 tonnes for July.