NEW DELHI: Asia’s gasoline market extended gains on Monday amid expectations of firm summer season demand.
The crack rose to $8.59 a barrel over Brent crude, compared with $8.27 a barrel in the previous session, although muted trading activity at the Singapore window limited the upside.
The naphtha crack, on the other hand, plunged by about $11 to the lowest level since Jan. 3 to $21.43 a tonne on Monday amid tepid demand.
The second-half June naphtha traded $2 higher than the following month. East-West arbitrage remained closed.
“We still do not expect arbitrage from the Mediterranean to Asia to reopen, particularly with our supportive view of clean freight rates through summer and Russian naphtha supply in Asia,” consultancy Energy Aspects said in a note.
Meanwhile, Asia’s reforming margin, or gasoline’s premium against naphtha, jumped to $20.61 a barrel on Monday from $19.11 a day earlier.
Kuwait’s newest refinery Al Zour has issued its first tender for fuel oil sales following a near eight-week hiatus, trade sources said on Monday, after a partial shutdown halted spot sales at the complex.
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