SINGAPORE: Asia’s naphtha crack extended losses on Friday, tracking weaker crude oil prices, moving further away from more a than five-and-a-half-year high recorded last week.

Some buyers were also sidelined by the recent surge in naphtha prices, trade sources said.

The naphtha crack slipped to $133.35 a tonne on Monday, down from $138.05 a tonne in the previous session. On Thursday, the naphtha crack hit $142.60 a tonne, its highest since January 2016.

The naphtha crack has rallied in July amid firm Asian demand and tightening global supplies even as overall Asia-bound western supplies for August arrival are expected to be above the monthly average of 2 million tonnes.

Asia’s gasoline crack was largely steady on Monday at $8.76 a barrel, down 2 cents from Friday.

Traders are weighing recovering demand in the United States and Europe against concerns about weaker demand in Asia as rising COVID-19 cases and fresh curbs in places like Indonesia, Thailand and China could limit consumption of the motor fuel.

India’s daily gasoline consumption exceeded pre-pandemic levels last month as states relaxed COVID-19 related lockdowns while gasoil sales were low, signalling subdued industrial activity in July, showed preliminary sales data of state fuel retailers.

Daily sales of gasoline rose to 76,500 tonnes in July, a jump of about 3.6% over the corresponding 2019 period and 5.7% over June this year, preliminary industry data showed on Friday.

China’s factory activity expanded in July at the slowest pace in 17 months as higher raw material costs, equipment maintenance and extreme weather weighed on business activity, adding to concerns about a slowdown in the world’s second-biggest economy.