SINGAPORE: Asia’s gasoline cracks edged higher on Monday, moving away from a near two-week low hit on Friday.
The motor fuel refining margin was supported by increased import requirements from Indonesia following a recent fire at Pertamina’s Belongan refinery, but sentiment was capped by concerns over regional demand as a new wave of COVID-19 infections hit several countries, trade sources said.
India now accounts for one in every six daily infections worldwide, while other parts of Asia are also reporting an increase in infection rates.
The gasoline crack climbed to a two-session high of $6.52 a barrel on Monday, up from $6.39 a barrel in the previous session.
Asia’s naphtha crack extended losses, dropping to a near three-week low of $94.43 a tonne, down from $96.30 a tonne in the previous session.
Refinery turnarounds in North Asia weakened the demand outlook for naphtha as steam crackers were taken offline, trade sources said.
Top oil exporter Saudi Arabia will meet most Asian customers’ requirements for May-loading crude after some buyers had asked for lower volumes, partly because of refinery maintenance and higher prices, several trade sources said on Monday.
The demand for lower volumes comes just as the kingdom is set to phase out additional voluntary production cuts over the next few months under plans agreed by the Organization of the Petroleum Exporting Countries and their allies including Russia to ease supply cuts.
India’s Nayara sold a 35,000-tonne naphtha cargo loading from Vadinar over April 28-30 to Mitsubishi at an unknown price level.
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