Gasoline crack gains 14% this week, shrugs off Indonesia uncertainty

About this update from Lotte Chemical Corporation

Asia's gasoline market gained 14% this week, recovering from a slight dip following Indonesia's decision to leave Singapore suppliers out of its tenders.The refining profit margin was steady above $11 per barrel over Brent crude on Friday. Window activity remained thin for a second straight day, market participants said.Traders are watching out for Pertamina's tender award in the coming week.The naphtha margin, on the other hand, declined about 1% this week and closed at $87.80 per metric ton on Friday. South Korean, Chinese and Japanese buyers snapped up June and July deliveries, while Kuwait's KPC was heard offering 45,000-46,000 tons of butane for June, market participants said.Meanwhile, Lotte Chemical has completed construction of its $3.95 billion petrochemical plant at Cilegon in Indonesia's Banten province, and will enter the start up phase this week, the company said in a letter to the local government, seen by Reuters.Separately, Lotte Chemical Titan has signed a three-year contract to buy naphtha from Aramco Trading Singapore starting in July 2025 and running to June 2028, the company said in a statement on Friday.The company will procure 300,000 to 400,000 metric tons of naphtha per year under the contract at market price, the company said.NEWS- Energy major Shell expects several traditional LNG exporter nations to turn into net importers, driving demand for the super chilled fuel and potentially easing concerns that the industry faces oversupply from a raft of planned new projects.- U.S. crude oil storage demand has surged in recent weeks to levels similar to the COVID-19 pandemic, according to data from storage broker The Tank Tiger, as traders brace for a flood of increased supply in coming months from the Organization of the Petroleum Exporting Countries and its allies.SINGAPORE CASH DEALS No trades.PRICES CASHASIA CLOSEChangePrev CloseRICOSN Naphtha CFR Japan M1 ($/mt)567.50-2.75570.25(NAF-1H-TYO)OSN Naphtha CFR Japan M2 ($/mt)558.50-3.00561.50(NAF-2H-TYO)OSN Naphtha Diff ($/mt)9.000.258.75(NAF-TYO-DIF)Naphtha Netback FOB Sing ($/bbl)61.06-0.3161.36(NAF-SIN)Naphtha-Brent Crack ($/mt)87.800.1787.63(NAF-SIN-CRK)Gasoline 97 ($/bbl)77.99-0.4078.39(GL97-SIN)Gasoline 95 ($/bbl)77.07-0.4077.47(GL95-SIN)Gasoline 92 ($/bbl)75.10-0.4075.50(GL92-SIN)Gasoline crack ($/bbl)11.14-0.0111.15(GL92-SIN-CRK)For a list of derivatives prices, including margin...

View stock analysis, news, and events for Lotte Chemical Corporation