Asia's naphtha crack eased 0.7 percent from a near five-month high to $114.63 a tonne on Wednesday, in tandem with lower Brent crude oil price, but fundamentals stayed firm on demand. Asia's top naphtha importer Formosa was looking to buy the fuel for first-half July arrival at Mailiao through a tender closing on May 24.
This came shortly after South Korea's GS Caltex and Japan's Idemitsu were also seeking naphtha this week for the same delivery period. The two buyers likely paid premiums in the high teen levels a tonne premium to Japan quotes on a cost-and-freight (C&F) basis but this could not be independently confirmed as petrochemical makers do not typically comment on their deals.
Asia's gasoline crack also eased to $9.65 a barrel after hitting a 5-1/2 month high of $9.91 a barrel in the previous session but demand was comparatively stronger. Indonesian Pertamina, Asia's top gasoline importer, turned to buying gasoline from the spot market as seasonal demand kicked driven by the Muslim fasting month kicked in. It could have paid a discount of $1.50 to $2 a barrel for 88-octane grade and a premium of $1 a barrel for 92-octane grade for the cargoes scheduled for June delivery.
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