NEW DELHI: Asia's naphtha crack fell on Tuesday hitting a two-month low, while the market flipped into backwardation with the prompt inter-month spread at $0.25 a tonne. The crack dipped to $116.13 per tonne from $119.95 in the previous session. On the demand front, Glencore and Gunvor purchased a second-half October loading naphtha cargo each in physical markets.
"While Korean refiners focus on light distillate production overall, the last two months have also seen a shift towards lower naphtha yields, which amid healthy domestic naphtha demand, were partially compensated by rising imports - which came in at their highest level since January 2020," JBC Energy said in a research note.
Asia's gasoline crack also touched a two-month low after crude oil prices came under pressure over worries power outages and flooding in Louisiana triggered by Hurricane Ida will cut crude demand from refineries. The crack dropped to $6.12 a barrel from $6.66 in the last session.
"Power outages and flooding could delay the return of refineries which might have an impact on crude oil demand and gasoline supply," Refinitiv Oil Research said in a note.
Analysts expect US stockpiles of gasoline to drop by about 1.7 million barrels last week, a preliminary Reuters poll showed on Monday. Energy companies were beginning a days-long evaluation of facilities hit by Hurricane Ida as widespread power outages and flooding onshore presented major hurdles to restarting oil and gas processing plants.
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