Asian gasoline crack hits one-year high

Asia's gasoline crack hit a one-year high of $12.43 a barrel on Wednesday, supported by squeezed supplies in Asia and stronger sentiment in the West, traders said.
US gasoline futures were trading slightly above $1.56 at 1120 GMT, up from the previous settlement at $1.55.
Trade and industry sources expect the gasoline market to fare better this year than last, with Energy Aspects expecting supply in Asia to exceed demand by 176,000 barrels day compared with 206,000 bpd in 2016.
Cash deals in the Singapore market totalling 150,000 barrels were the lowest volume in a single session since January 25. Emirates National Oil Co (ENOC) sold one of the three cargoes traded in the cash market on Wednesday after last month's spree when it bought 18 cargoes of gasoline totalling 900,000 barrels. That was nearly a quarter of the total volume transacted for January at 3.65 million barrels.
Asia's naphtha demand remained strong, with buyers snapping up cargoes at steep premiums. South Korea's LG Chem bought a naphtha cargo for second-half March delivery at a premium of about $9 a tonne to Japan quotes on a cost-and-freight (C&F) basis.
This came a day after LG Chem had paid at least $9.50 and $10 for cargoes for delivery to Yeosu and Daesan respectively. "The lower premium today versus yesterday is not because the market has softened. It's more to do with LG Chem's tender being the first purchase tender for cargoes delivering in second-half March," said a Singapore-based trader. Two months ago, spot naphtha cargoes scheduled for first-half January delivery to South Korea were sold at discounts. The market has since turned around due to lower levels of Western cargoes coming to Asia coupled with a lack of alternative feedstock.
The recent fire at Ruwais, Abu Dhabi, added to buyers' woes.