SINGAPORE: Asia’s naphtha crack extended gains to reach its highest since Jan. 8, 2016, at $119.35 a tonne on Wednesday as a string of demand has soaked up supplies.

Taiwan’s Formosa, Asia’s top naphtha importer, bought between 100,000 tonnes and 150,000 tonnes for Dec. 11-25 arrival in Mailiao at premiums of about $6 a tonne to its own price formula on a cost-and-freight (C&F) basis.

This was the highest premium it had paid in about 2-1/2 years.

Buyers have been quick to snap up cargoes recently.

India’s Oil & Natural Gas Corp (ONGC) sold to BP 30,000 tonnes of naphtha for Nov. 7-8 loading from Hazira at premiums of about $9 a tonne to Middle East quotes free on board (FOB).

This was higher than a cargo ONGC sold to Vitol for July loading out of Hazira.

ONGC did not sell any naphtha loading between August and October from Hazira.

Separately, it was unclear if Reliance sold a cargo for late-November loading from Sikka, but traders said the refiner was targeting a premium of at least $16 a tonne to Middle East quotes FOB.

It previously sold a cargo for Nov. 20-22 loading from Sikka to Shell at $16 a tonne premium.

India’s Bharat Petroleum Corp (BPCL) offered 25,000 tonnes of naphtha for Nov. 19-21 loading from Mumbai through a tender closing on November 3.

It had recently withdrawn a tender to sell naphtha from Kochi.—Reuters