Asian oil product swaps fell on Tuesday, while the naphtha/Brent crack held firm amid spot demand from end users. December naphtha swaps fell 45 cents at $58.90 a barrel, while the December/January backwardation widened by 5 cents to 30 cents from the previous close.
Naphtha's premium against Brent for the second half of January held steady at $92 a tonne, the market remains buoyed by spot demand from South Korean end users. Naphtha traders patiently wait to see if Indian power plants begin to boost usage of naphtha as LNG prices rise, reducing exports into Asia. December gas oil declined 60 cents to $69.85 a barrel, with the December/January contango narrowed by 10 cents to $1.45.
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