Asia's naphtha crack recovered to a two-session high of $27.40 a tonne after falling to a 2-1/2 week low in the previous session as weaker Brent crude prices gave refiners some reprieve. Gasoline crack also recovered to a two-session high of $7.57 a barrel. Fundamentals of petrol have been much stronger compared to a month ago when margins were below $2 a barrel.

Gasoline inventories in the US are expected to have fallen for the fifth straight week, an extended Reuters poll showed on Tuesday. Indian Oil Corp (IOC) has extended the validity of its sales tender for 27,000-tonnes cargo scheduled for August 3-5 loading from Chennai by two days to July 18. IOC had previously sold two cargoes for July loading to Vitol at premiums within the mid to high teens a tonne level to its own price formula on a free-on-board (FOB) basis.

China's WEPEC was looking to sell up to 36,000 tonnes of gasoline for August 24-26 loading from Dalian but results were not immediately clear. India's MRPL on the other hand has offered 25,000 tonnes of 95-octane grade gasoline for August 14-16 loading through a tender closing on July 23, with bids to stay valid until July 24.

Copyright Reuters, 2019