Asia oil/products: Crude stable, gasoline cracks surge $1/b

30 Jun 2021

Quantum Commodity Intelligence – Middle East crude prices ended the day little changed Wednesday as the markets treads water ahead of the OPEC+ meeting, while light ends were the star performers among refined products.

Dubai cash for August delivery was assessed at $72.85/b on June 30 (1630 Singapore time), up $0.07/b from Tuesday, while DME Oman futures for August were up $0.52/b at $72.00/b.

But monthly averages gained more than $5/b during August with Dubai at $71.57/b, compared to the July average of $66.32/b, while August DME Oman futures averaged $71.66/b, compared to July’s of $66.40/b.

OPEC+ consensus is moving towards a modest hike in August of 500,000 bpd, with the producer group pushing for caution due to the creep of the Delta variant.

Consumers nations though are still looking for a at least a 1 million bpd to help close the expected supply/demand imbalance in the second half of the year.  

Products

Naphtha cracks extended their near three-month highs on Wednesday as light end cracks in general firmed, shrugging off news of a stock build in Fujairah. No trades were heard and spot was marked at $659/mt, up $1.50/mt on the day. The crack was marked at $112/mt, up 2% on the day.


RON 92 gasoline cracks rose sharply in trade on Wednesday, hitting a near two-month high. No deals were reported and the backwardation in the July-Aug spread steepened to $0.45/b from $0.35/b a day earlier. Spot was assessed at $81.50/b FOB Singapore, with the crack rising to $6.94/b from $5.97/b on Tuesday.


Jet cracks, however, continued to slide. The cash differential was assessed at -$0.40/b, which is where it traded. That left the crack a touch higher at $1.88/b, although paper cracks were lower.


Diesel cracks were broadly flat on at $4.62/b. No deals were heard and 10ppm was marked at $79.24/b FOB Singapore.


Fuel oil cracks dipped slightly, with 0.5% marine fuel falling to $2.14/b FOB Singapore.