NEW DELHI: Asia’s naphtha crack extended fall on Tuesday, lingering near two-year lows, on worries over expanding supplies and poor demand within the region.

The refining profit margin for naphtha dropped to minus $49.45 a tonne, down $13.08 from the last close. Naphtha margins have more than halved since the beginning of May.

India continues to account for the lion’s share of naphtha supplies in

Asia and is on course to hit 700,000-800,000 metric tonnes of exports in

June; the highest level since January; according to assessments by Refinitiv Oil Research.

Asian refining margins for 10 ppm gasoil jumped to $56.75 per barrel over Dubai crude on Monday, a new high, according to Refinitiv Eikon data that goes back to 2014.

China has issued 4.5 million tonnes of quotas for refined fuel exports, a top-up to the first issue for 2022 to ease high domestic inventories, as demand was dented by COVID-19 lockdowns.