NEW DELHI: Asia’s naphtha crack weakened to the lowest level since December 2020 on Monday after tight supplies in gasoline markets eroded hopes of blendstock demand amid poor downstream margins, market watchers said.

The crack plunged to $55.13 a tonne, down from $66.28 in the last session, and the inter-month spread between first-July and first-half August narrowed in backwardation to zero.

The Gasoline crack in the region also retreated from record levels to $28.85 a barrel on Monday. In physical markets, energy trader Vitol snapped up 150,000 barrels of the benchmark 92-octane grade of gasoline.

Meanwhile, South Korea’s S-Oil Corp said it has resumed production at its No.2 residue fluidized catalytic cracking (RFCC) unit after a blast at its Onsan refinery that killed one person last week.

Sri Lanka’s Ceypetco issued a tender seeking 300,000 barrels of the higher 95-octane grade of motor fuel for delivery between July 5-6. The tender closes on May 31.