NEW DELHI: Asia’s naphtha crack extended gains on Wednesday as the market remained tight amid firm feedstock demand and dwindling supplies.
The crack surged to $172.95 a tonne from $169.13 in the last session. In physical markets, BP purchased a first-half January loading cargo of naphtha.
However, the upside was limited after light distillates stocks at Fujairah Oil Industry Zone, which includes naphtha and gasoline, rose by 750,000 barrels to a near one-month high of 5.6 million barrels.
Naphtha margins have surged nearly 27% in October as it remained the preferred petrochemical raw material for crackers.
Meanwhile, the gasoline crack eased to $12.19 a barrel from $13.29 in the previous session after inventories at Fujairah rose.
Sri Lanka’s Ceypetco issued a tender seeking the delivery of 1.8 million barrels of 92-octane gasoline, or six cargoes of 300,000 barrels each, between February and September 2022. The tender will close on Dec. 7 with offers valid for 90 days.
India’s fuel demand rose in October to a seven-month peak, with gasoline sales surging to an all-time high, government data showed on Tuesday, as festivals boosted mobility and economic activity in the world’s third biggest oil consumer.
Oil prices rose on Wednesday, extending strong gains in the previous session, after industry data showed US crude stocks unexpectedly fell last week just as near-term travel demand picked up with COVID-19 pandemic curbs easing.
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