NEW DELHI: Asia’s gasoline crack inched up on Monday but remained below $7 a barrel for a second straight session after tepid demand recovery due to COVID-19 outweighed supply disruption worries triggered by Hurricane Ida.
The crack was at $6.66 a barrel, up from $6.56 on Friday.
“The softening of price markers largely reflects renewed concerns over fuel demand recovery due to varying degrees of success for cities placed under mobility restrictions,” Refinitive Oil Research said in a note.
Asia’s naphtha crack also edged slightly higher after crude oil prices slipped from a four-week high as Hurricane Ida weakened.
The crack rose to $119.95 a tonne from $118.80 in the previous session.
On the demand side, Petro Diamond purchased first-half November loading cargo of naphtha in physical markets.
“Far East’s naphtha import demand is likely to hit a short-term peak this quarter also, despite strength in the product’s demand,” Braemar ACM Shipbroking said in a research note.
Oil prices dropped from a four-week high on Monday as Hurricane Ida weakened, and attention turned to an OPEC meeting on Wednesday to discuss a further output boost.
Hurricane Ida pounded Louisiana after sweeping ashore from the Gulf of Mexico, flooding wide areas under heavy surf and torrential rains as fierce winds toppled trees and power lines, plunging New Orleans into darkness after nightfall.
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