Based on data from consultancy firm IHS Markit, a supply surplus of 100,000 tonnes is expected in September in Asia versus 150,000 to 200,000 tonnes in August. Asia's gasoline crack was also down, reaching a three-session low of $6.17 a barrel, due also to abundant supplies. China's gasoline exports in July for instance rose to near-record monthly levels of 1.56 million tonnes, customs data showed on Friday, as refiners stepped up overseas shipments amid a wave of new production and slowing domestic demand.
The data came in the same week which showed that Singapore gasoline stocks had risen in the week to Thursday while inventories in the United States last week had also increased. But data from Europe bucked the trend, showing that gasoline stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub dropped by 21.2% to 1.027 million tonnes in the week to Thursday, the lowest since May 30 data from Dutch consultancy Insights Global showed.
Indian Oil Corp (IOC) sold 35,000 tonnes of naphtha for September 12-14 loading from Chennai to Trafigura at premiums of $16 to $17 a tonne to its own price formula on a free-on-board (FOB) basis.
This, however, could not be directly confirmed as sellers and buyers typically do not comment on their deals. Trafigura had previously bought a cargo from IOC for end-August loading from Chennai at similar premiums. Kuwait, on the other hand, sold 50,000 tonnes of heavy full-range naphtha for September 24-25 loading at premiums around the mid-teen a tonne level to Middle East quotes on an FOB basis.
The global output capacity for polyethylene, a key ingredient for plastics used in everything from piping to toys, is expected to exceed demand by 3 million tonnes by the end of 2020, compared to overcapacity of 545,000 tonnes in 2019, data from commodity consultancy Wood Mackenzie showed. Polyethylene is made mostly from naphtha-based ethylene in Asia. A biofuels producer, S.G. Preston Co, said on Thursday it was proposing to acquire the fire-damaged Philadelphia Energy Solutions refinery and convert it to make renewable diesel and jet fuels.