Asia Naphtha/Gasoline-PSO seeks 2025 gasoline; naphtha falls to 11-week low

Asia’s gasoline margins improved after slumping in the previous session as improvements in refining margins are boosting market sentiments coming from lower exports from China.

The crack improved to $4.71 per barrel over Brent crude from $4.46 on Monday.

In tenders, Pakistan’s PSO was seeking three cargoes of the 92-octane gasoline for the respective loading periods of: Jan. 1-5, Feb. 1-5, and March 1-5, the company website listed. The tender closes on Nov. 25.

In naphtha, the margins fell to more than an 11-week low to reach $98.83 per metric ton over Brent crude, its lowest since Sept. 26.

“Trump has repeatedly said he could end the Russia-Ukraine war ‘within 24 hours’. A rapid resolution of the nearly three-year long war could possibly pave the way for Russian naphtha exports to return to pre-war flows that was accepted by all Asian buyers,” an LSEG report stated.

NEWS

Oil prices were little changed on Tuesday, awaiting further price direction from OPEC’s monthly report, with investor disappointment over China’s latest stimulus plan and oversupply concerns keeping buying interest at bay.

The Japanese government is planning to continue gasoline subsidies next year with phased-in reductions, the Nikkei newspaper said on Tuesday.

In a draft economic stimulus plan, the subsidies will continue in 2025, but upper price limits for consumers will be raised from about 175 yen ($1.14) per litre to 185 yen, Nikkei said.

Indian Oil Corp IOC.NS said on Tuesday a fire at its Gujarat refinery had been fully extinguished and refinery operations were back to normal, even as the death toll rose to two.

SINGAPORE CASH DEALS O/AS

One gasoline deal and one naphtha trade.
Source: Reuters (Reporting by Haridas; Editing by Shreya Biswas)