NEW DELHI: Asia’s naphtha crack plunged on Monday, snapping a six-session rally, as demand from petrochemical units dwindled.

The refining profit margin slipped to $134.98 a tonne, down $8.80 from Friday’s close. A rise in crude oil benchmarks also piled pressure on naphtha margins.

“The loss in naphtha demand has deepened further as more petrochemical producers in the region announced plans to lower run rates,” Refinitiv Oil Research said in a note.

Two South Korean petrochemical operators have slashed run rates at their ethylene crackers to 70-85% last week, Refinitiv said.

The gasoline crack inched lower to $10.79 a barrel from $10.87 in the last session.

“We expect first-quarter global (gasoline) demand to grow by 1.44 million barrel per day year-on-year, even with a weaker outlook because of omicron, and will still exceed supply by 0.42 million barrel per day,” consultancy Energy Aspects said in a report.

China’s refinery output hit a record in 2021, up 4.3% from 2020, on robust first-half fuel demand and as refiners ramped up processing to fill a supply gap after a hefty new tax closed loopholes in blending fuel imports.