Asia Naphtha/Gasoline-Gasoline crack edges lower over Omicron concerns

NEW DELHI: Asia’s gasoline crack edged lower on Monday over fuel demand concerns arising from surging Omicron cases across the globe. The refining profit margin eased to $10.53 a barrel, down 14 cents from Friday’s close. However, the downside remained limited as most countries in the region have refrained from imposing strict mobility-related curbs to rein in spread of the COVID-19 variant.

In physical markets, Unipec purchased a cargo of the benchmark 92-octane grade of gasoline. “A defining factor for gasoline demand during first-quarter of 2022 will be Omicron and resulting restrictions in mobility,” consultancy FGE wrote in a note.

Meanwhile, the naphtha crack rose for a second consecutive session to $137.43 a tonne from $132.43 on Friday, after posting a loss of over 19% last week. Oil prices edged up on Monday as supply disruptions in Kazakhstan and Libya offset worries stemming from the rapid global rise in Omicron infections.