NEW DELHI: Asia's naphtha crack eased for a seventh consecutive session on Friday, and the market flipped into contango with the prompt inter-month spread at $1 a tonne for the first time since December 2020.

The crack dipped to $107.83 a tonne from $112.33 in the previous session.

On the demand side, naphtha inventories at Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area increased by 20%, due to high imports from the United States, data from Dutch consultancy Insights Global showed.

"While margins in the US and Europe have gained noticeable traction lately, Asia has seen somewhat of a mixed bag, with naphtha cracking economics counter-seasonally superseding those for LPG," JBC Energy said in a note.

Asia's gasoline crack also slipped despite huge draw-down in Northwest European stocks, as new curbs in countries facing surge in COVID-19 Delta variant dented demand hopes.

The crack fell to $7.41 a barrel, the lowest since June, from $8.51 in the previous session.

Nations from Australia to Vietnam announced more drastic coronavirus curbs and longer lockdowns for citizens, as authorities struggled to rein in outbreaks.

"Despite the cutback in overall regional supply, broader concerns grew over the outlook for fuel demand after surging COVID-19 cases driven by the Delta variant triggered stricter and prolonged mobility curbs around the world and weighed on market sentiment," Refinitive Oil Research said in a report.

• Gasoline stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area fell 8% to the lowest level since October 2016 amid high transatlantic exports, data from Dutch consultancy Insights Global showed.

• Oil prices steadied on Friday, clambering away from three-month lows, but they were still on track for a weekly loss of more than 5%.