SINGAPORE: The Asian gasoil market extended gains on Wednesday, with the front-month December crack climbing to its highest since mid-June, Reuters data showed.
The cracks strengthened across the 12-month forward curve, as the market continues to be supported by strong demand and a supply shortage especially in North Asia.
Gasoil stocks in Japan for the week ended Nov. 12 fell 5.37 percent from the previous week, data from the Petroleum Association of Japan showed.
Naphtha prompt crack rebounded to a discount narrower than $13.00 for the first time in two weeks, but the market continued to be weak as regional demand remained low.
The fuel oil market held steady, with the prompt December/January spread staying at $12.00 a tonne. In early trade, one 5,000-tonne lot of the January/February contact was traded at $8.25. The market is expected to be tight, as Western arbitrage inflows into Asia for December fall under 3 million tonnes so far.
All fixed-price swaps contracts fell across their 12-month forward curve, except naphtha, as Brent crude lost $1.57 to $111.57 by 0430 GMT from the previous Asian close on Tuesday.
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