NEW DELHI: Asia's naphtha crack surged to a two-month high on Monday, benefiting from steady demand from the petrochemical sector and high prices of rival cracker feedstock, liquefied petroleum gas (LPG).
The crack climbed to $146 a tonne, the highest level since Aug. 11, from $144.40 on Friday.
Naphtha demand remained strong from the petrochemical sector after South Korean and Japanese producers sought paraffinic grades for November delivery, according to Refinitiv Oil Research weekly report.
"The naphtha market is expected to stay firm, amid persistently high prices of LPG, rendering switching economics for crackers with a flexible configuration still unworkable ahead of the peak winter heating season," the report added.
Meanwhile, Asia's gasoline crack eased from a two-year peak, but remained strong above $9 a barrel as a recovery in regional demand with easing mobility curbs lifted market sentiment.
The crack slipped to $9.67 a barrel from $10.02 in the last session.
Oil prices rose more than 2% on Monday, extending gains, as an energy crisis gripping major economies shows no sign of easing amid a pick up in economic activity and restrained supplies from major producers.
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