Gulf Oil and Gas accountACCOUNT

Asian Product Market - September 2017

Source: OPEC 9/13/2017, Location: Middle East

Share |
The Asian market continued its upward trend in August, and was also affected by disruption of supply from the USGC, resulting in growth in all product crack spreads, with the exception of fuel oil, which declined sharply.

The Singapore naphtha crack inched up compared with July levels to gain around $1.92/b over the month, moving the crack spread into positive territory for the first time since February 2017. The crack spread against Oman crude in Singapore averaged $0.21/b in August. Product fundamentals were solid in August, with strong gasoline prices supporting reforming spreads and healthy petrochemical demand in the region. Additionally, scheduled refinery maintenance will affect 0.3 mb/d from MRPL, India’s Mangalore refinery, which is a key naphtha exporting refinery in the region. Formosa Petrochemical’s planned shutdown of its 2 million tons yearly (mty) is projected to last until the end of September, pressuring the crack spread going forward.

The Asian gasoline 95 RON crack spread against Oman crude in Singapore averaged $17.1/b in August, up by a healthy $3.0/b compared with the previous month’s level. The gasoline market continued to strengthen during August, supported by healthy overall demand in the region and exacerbated by refinery outages on the USGC, which opened up arbitrage opportunities to the US. Additionally, fire at Petrochina’s 0.4 mb/d Dalian refinery further tightened supply in the region, thus supporting the crack spread.

At the middle of the barrel, the gasoil 50ppm crack spread witnessed some gains, adding around $0.1/b compared with July to reach $13.9/b in August. In the first half of August, the product exhibited a downward trend on the back of a heavy monsoon season in India, halting diesel requirements and unworkable arbitrage to Europe. However, towards the end of the month, the gasoil crack spread received support from supply outages on the US Gulf Coast as product prices increased. The jet/kero crack spread also experienced upward momentum in tandem with gasoil, increasing by $0.6/b compared with July to reach $12.74/b in August, supported by high global demand and outages from the US Gulf Coast.

At the bottom of the barrel, the Asian fuel oil 180 cst crack spread in Singapore against Oman averaged about minus $3.2/b in August, shedding around $1.7/b of its previous month’s value. The fuel oil market weakened as stocks in Singapore rose on the back of rising volumes from the US prior to Hurricane Harvey and power sector demand from South Korea and Japan waned.

Oil Treating & Refining News in Oman >>

Iraq >>  5/15/2018 -  Investors interested in bidding to build a 70,000 barrel-per-day oil refinery in Diwaniya south of Baghdad have until July 31 to make offers, the Ira...
Yemen >>  5/13/2018 - Yemen’s Aden refinery is seeking 150,000 tonnes of oil products for the local market in two separate tenders, the state news agency SABA said. ...

Iraq >>  5/9/2018 - Investors interested in bidding for a project to build a 100,000 barrel-per-day refinery in Kut have until June 14 to make offers, an oil ministry sta...
Oman >>  5/7/2018 - Oman is working with consultancy Mckinsey & Co to integrate its refining and petrochemical industries into one entity, a senior Omani official and a f...

Related Categories: Agents, Anti-foaming  Aromatic Solvents  Butene  Cleaning  Corrosion Inhibiting  Crude Oil  Diesel Fuel  Ethylene  Fluids Drilling, Completion, Workover & Stimulation  Fluids/Chemicals  Fracturing Sand  Fuel oil  Gasoline (Lead free)  General  Grout  Jet fuel  Kerosene. Domestic use  Lubricants, Oils & Greases  Nitrogen  Oil Treating & Refining  Polyethylene  Polyvinyl chloride  Propane  Sand, Sandblast  Summer Diesel  Surfactants 

Related Articles: Aromatic Solvents  Butene  Cleaning  Corrosion Inhibiting  Crude Oil  Diesel Fuel  Ethylene  Fluids Drilling, Completion, Workover & Stimulation  Fluids/Chemicals  Fracturing Sand  Fuel oil  Gasoline (Lead free)  General  Jet fuel  Kerosene. Domestic use  Lubricants, Oils & Greases  Nitrogen  Oil Treating & Refining  Polyethylene  Polyvinyl chloride  Propane  Sand, Sandblast  Surfactants 


Oman Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |

More News

 

Oil & Gas Companies in Oman >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.