SINGAPORE: Asia's gasoline crack dipped on Monday, plunging to its lowest level in over two weeks, weighed down by concerns over short-term demand as several countries have reimposed COVID-19 restrictions to battle a resurgence in cases.
Despite a drop in feedstock crude prices, the gasoline crack fell to $8.08 per barrel on Monday, the weakest since July 2. The crack was at $8.71 per barrel on Friday.
The regional gasoline crack, however, would likely get some support in the coming weeks as China and India are expected to keep exports low, trade sources said.
China's gasoline exports in June were 1.45 million tonnes, down from 1.55 million tonnes in May, but up 91percent from June 2020, data from the General Administration of Customs showed on Sunday.
Gasoline exports from India this month are expected to stay at below-average levels with volumes projected lower than 1 million tonnes for the first time in three months, Refinitiv Oil Research assessments showed.
Indian state fuel retailers' gasoline sales have exceeded pre-pandemic levels in the first fortnight of July, growing about 3.44percent over the corresponding 2019 period, industry data showed on Friday.
Meanwhile, Asia's naphtha crack climbed to $137.73 per tonne on Monday, the strongest level so far this year. The crack was at $134.33 per tonne on Friday.
Sri Lanka's Ceylon Petroleum Corp (Ceypetco) is offering 110,000 barrels of naphtha for Sept. 2-3 loading from Dolphin Tanker berth, Colombo. The tender closes on July 27 and will remain valid for two days.
Oil prices fell more than $1 a barrel on Monday, after the OPEC+ group of producers overcame internal divisions and agreed to boost output, sparking some concerns about a crude surplus as COVID-19 infections continue to rise in many countries.
US investment bank Goldman Sachs said the OPEC+ deal to boost oil supply supports its view on oil prices and expects modest "upside" to its summer forecast for Brent to reach $80 a barrel.
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