NEW DELHI: Asia’s gasoline crack dropped below $7 a barrel as inventories in Japan increased, and Middle Eastern stocks showed a nominal decline after rising for four straight weeks.
The crack fell to $6.54 per barrel, down from $7.05 in the previous session.
In physical markets, Vitol bought two cargoes of 95-octane grade gasoline. Vitol has purchased 12 cargoes of the higher grade and five cargoes of the benchmark 92-octane gasoline so far in September.
Denting demand outlook, Japanese stocks rose 42,000 kilolitres to 1.62 million, according to data released by the Petroleum Association of Japan.
On the other hand, stockpiles of light distillates at Fujairah Oil Industry Zone, including gasoline and naphtha, registered a slight fall of 7,000 barrels, or 0.1%, on the week to 5.755 million barrels, after rising by 289,000 barrels in the previous four weeks.
Asia’s naphtha crack also dipped after stocks in Japan rose. The crack slipped to $128.90 a tonne, from $133.70 in the last session.
Japan’s naphtha inventories rose 43,000 kilolitres to 1.63 million last week weighing on market sentiment.
“Naphtha demand in Asia is lower with several crackers undergoing maintenance or delaying start-ups post-maintenance,” Vortexa said in a research report.
Vietnam’s Binh Son Refining and Petrochemical has cut output at its refinery for the second time in a month and could see operations suspended due to weak domestic fuel demand, a company source and state media said on Wednesday.
Oil prices rose on Wednesday as U.S. Gulf of Mexico producers made slow progress in rebuilding output, although gains were capped by a stronger dollar and concerns about the impact on demand of rising coronavirus infections.
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