Singapore (Platts)--6 Oct 2015 508 am EDT/908 GMT
The Asian gasoline market might not hang onto its recent strength through the fourth quarter due to potentially lower demand from top regional importer Indonesia and the winter demand lull in the Northern Hemisphere, sources said Tuesday.
Reflecting the current strength in the market, the Balance October/November time spread for the FOB Singapore 92 RON gasoline spread widened to $3.20/b Monday, from $3.15/b Friday.
However, the first-month/second-month spread has narrowed to 70 cents/b after widening to $1.90/b on September 30. The second-month/third-month, or December/January, spread was at minus 70 cents/b Monday, easing from a backwardation of 80 cents/b on September 30.
In a backwardated market, forward prices are higher in the nearer delivery months than in the further delivery months. The widening of a backwardation indicates rising prompt demand and falling supply.
