NEW DELHI: Asia’s gasoline crack gained on Wednesday after positive consumption data from India boosted market sentiment. However, gains remained limited as Middle Eastern inventories rose for a second consecutive week.
The crack inched higher to $6.63 a barrel from $6.12 in the previous session.
India’s August gasoline sales stayed above the pre-COVID-19 level at 2.4 million tonnes, preliminary sales data from state fuel-retailers showed.
“The upcoming festive seasons in August-November will boost domestic demand [in India]. But upside may be capped by a third wave of pandemic as several states are reporting rising infections,” Vortexa said in a research report.
Further on the demand side, stocks of light distillates at Fujairah Oil Industry Zone that includes gasoline and naphtha, rose by 131,000 barrels on the week to 5.762 million barrels, according to industry information service S&P Global Platts.
Asia’s naphtha crack also gained on Wednesday hitting near two-month high, and the prompt inter-month spread widened in backwardation for a second straight session to $2.25 a tonne.
The crack jumped to $121.73 per tonne, highest since early July, from $116.13 in the last session.
US gasoline inventories rose by 2.7 million barrels according to two market sources, citing American Petroleum Institute figures on Tuesday.
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