NEW DELHI: Asia's gasoline crack rose on Monday for a second consecutive session on expectations of firm demand from India. The crack edged higher to $7.68 a barrel from $7.28 on Friday.
India's gasoline demand is likely to hit a record this fiscal year. The expected rise in import could boost refiners' margins for the fuel in the region. "With the recovery on increasingly solid footing, we expect Indian gasoline demand through the rest of the year to maintain a growth trajectory of some 30,000 bpd versus its 2019 levels," consultancy JBC Energy said.
In physical markets, there were three trades for gasoline, of which two were for the benchmark 92-octane grade and one for 95-octane. Vitol purchased all three cargoes. Asia's naphtha crack also gained steam for a second straight session as crude oil prices eased after Saudi Arabia slashed October prices for Asia by at least $1 a barrel.
The crack climbed to $129.73 a tonne from $125.35 on Friday, while the prompt inter-month spread widened in backwardation to $6 per tonne. Oil prices fell on Monday, extending losses after the world's top exporter Saudi Arabia slashed crude contract prices for Asia over the weekend, reflecting well-supplied global markets and concerns over the outlook for demand.