Asia's gasoline crack hits 1-1/2-week high

Asia's gasoline crack hit a 1-1/2 week high on Wednesday, rebounding from a record low in the previous session, following a plunge in raw material oil prices but the crack value remained in steep discounts due to oversupply and a lack of demand.

The gasoline crack was at a discount of $9.72 a barrel to Brent crude versus a discount of $13.15 on Tuesday.

Similarly, Asia's naphtha crack recovered to a 1-1/2 week high at a discount of $30.90 a tonne to Brent crude compared to a discount of $55.38 on Tuesday.

Brent prices fell 4% towards $28 a barrel on Wednesday, pressured by reports of persistent oversupply and collapsing demand due to global coronavirus-related lockdowns and a lack of coordinated oil purchases for strategic storage.

Demand for naphtha scheduled for second-half May delivery has been brisk, with several buyers snapping up cargoes this week.

Industry sources said apart from South Korea's YNCC, Lotte Chemical, GS Caltex also bought the fuel at a discount of $12 to $13 a tonne to Japan quotes on a cost-and-freight (C&F) basis.

Other buyers this week include Singapore's PCS and Taiwan's Formosa.

Analysts estimated that gasoline inventories in the United States had likely to rise by 6.4 million barrels last week, an extended Reuters poll showed.