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Asia's open-specification naphtha intermonth premiums extended gains into a sixth session on Friday, supported by tight supplies and firm demand. The second-half March price was $11.25 a tonne higher than the second-half April, making this the highest intermonth premium in nearly eight months.

Spot premiums spiked in view of delays in cargo arrivals in Asia from the West due to bad weather, traders said.

South Korea's LG Chem, for instance, paid a premium of some $12 a tonne to Japan quotes on a cost-and-freight (C&F) basis for naphtha scheduled for second-half March delivery.

This was the highest premium the petrochemical maker has paid since late May last year.

Japan's Idemitsu Kosan also locked in naphtha for the same delivery period of second-half March at premiums around $13 a tonne, traders said.

This was more than double the $5 a tonne premium Idemitsu had paid on January 22.

South Korea's GS Caltex bought naphtha for second-half March at premiums of about $4 a tonne, but traders said the buyer was using a different pricing formula from LG Chem and Idemitsu.

Asia's gasoline crack was at a discount of $1.99 a barrel to Brent crude, as high supplies kept the levels mostly at discounts so far this year.

Gasoline stocks held independently at the storage and refining hub of Amsterdam-Rotterdam-Antwerp edged up 1.7 percent to 1.375 millions tonnes in the week to Jan. 31, data from Dutch consultancy PJK International showed on Thursday.

This was the highest since March 29, 2018 when inventories were at record levels.

Gasoline inventories in Singapore were also in abundance in the week ended Jan. 30 as they were just 2.8 percent below the record high levels.

Copyright Reuters, 2019


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