Asia’s gasoline margins inched down further on Wednesday, as the market seems to be bearish over the ample supply in the region.
The crack dipped to $8.54 per barrel over Brent crude, from $8.65 on Tuesday.
In naphtha, the margins climbed by $1.42 to $$92.30 per metric ton over Brent crude.
Regional traders said that they remain bullish heading into the new year on naphtha market fundamentals, as the light distillate is set to receive a boost to demand following at least three new crackers coming online in China in early 2025.
However, optimism is dampened as several regional crackers have announced a temporary shutdown of crackers amid persistently poor downstream margins.
The backwardation between first-half February and first-half March narrowed to $4.25.
INVENTORIES
Light distillate stocks, including naphtha and gasoline, at the Fujairah commercial hub dipped by 263,000 barrels to 6.686 million barrels in the week ending Dec. 16, S&P Global Commodity Insights data showed.
U.S. Gasoline inventories rose by 2.45 million barrels, and distillate stocks rose by 744,000 barrels in the week ending Dec. 13, market sources said, citing American Petroleum Institute figures on Tuesday.
NEWS
Oil prices edged higher on Wednesday as investors remained cautious ahead of an expected interest rate cut by the U.S. Federal Reserve, while weighing up the potential supply impact of tighter sanctions on Russia.
OPEC+ is wary of a renewed rise in U.S. oil output when Donald Trump returns to the White House, delegates from the group said, because more U.S. oil would further erode OPEC+ market share and hamper the producer group’s efforts to support prices.
China’s gasoline exports rebounded in November to the highest level since August 2023, customs data showed on Wednesday, as exporters rushed to sell products before a cut in tax rebates came into effect this month.
SINGAPORE CASH DEALS
One naphtha trade and no gasoline deals.
Source: Reuters (Reporting by Haridas; Editing by Eileen Soreng)