NEW DELHI: Asia’s naphtha crack dropped on Tuesday for a second consecutive session on concerns of waning demand from petrochemical crackers amid recovering supplies from the West. The refining profit margin plunged to $129.35 a tonne, the lowest since Jan. 6, from $134.98 in the last session. Naphtha margins also came under pressure due to a spike in crude oil benchmarks. Western arbitrage arrivals in January are set to jump to their highest level in five months at about 2.4 million metric tonnes, according to assessments by Refintiv Oil Research.
Meanwhile, the gasoline crack in the region rose to $11.07 per barrel, up 28 cents from the previous close, on hopes of a smaller-than-expected impact of the Omicron coronavirus variant on fuel demand.
China’s gasoline exports were 940,000 tonnes, rising from November’s 810,000 tonnes but down 35% from the same period last year, data from the General Administration of Customs showed. Benchmark oil prices climbed to their highest level since 2014 on Tuesday as possible supply disruption after attacks in the Mideast Gulf added to an already tight supply outlook.
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