SINGAPORE: Asia's gasoline crack slipped on Friday, due to lingering concerns over near-term demand as COVID-19 infections continue to rampage through key regional markets.
The gasoline crack dipped to $6.29 per barrel on Friday, down from Thursday's $6.61 per barrel. The crack, however, posted a gain of 38.5% this week due to weaker feedstock crude prices.
Wider lockdowns in India and Japan will continue to weigh on regional demand, while supplies are expected to increase as some refineries return from seasonal turnarounds, trade sources said.
A continued rise in coronavirus cases and the sluggish pace of vaccinations in several markets will hinder governments to ease mobility restrictions for a larger part into the second half of this year, market watchers said.
Asia's naphtha crack fell to $97.63 per tonne on Friday, compared with $98.20 per tonne a day earlier.
A gradual oil demand recovery is largely on track as economies re-open, British bank Barclays said on Friday, adding it remained constructive on oil prices despite rising coronavirus cases across Asia and potential return of Iranian supplies. The bank, however, lowered its demand estimates for the Emerging Markets Asia (ex-China) region, flagging risks of a further downside if the recent surge in infections persisted.
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