Asia’s gasoline markets gained on Wednesday on hopes of firm demand from key importer Indonesia, although high inventories in the United States continued to weigh on demand sentiment.
The crack rose to $9.70 per barrel over Brent crude, compared with $8.37 per barrel a day earlier.
Meanwhile, cheap gasoline from a supply glut along the U.S. Gulf Coast has reopened far-flung markets, including Australia and Mozambique, to U.S. fuel, traders said.
“USGC cracks are likely to remain weak relative to the other regions over the next few weeks to encourage elevated exports, as well as send a signal to refiners not to run too high,” analysts at energy consultancy FGE said in a note late Tuesday.
INVENTORIES
Light distillate stocks at the Fujairah commercial hub fell by 433,000 to 6.831 million barrels in the week to Jan. 8, S&P Global Commodity Insights data showed.
NEWS
– The economic incentive to import oil from the U.S. Gulf Coast to Asia has closed as the cost of booking supertankers on the route has surged amid a jump in bookings for the vessels, traders said this week.
– TotalEnergies has increased its holding in the Venus oil discovery offshore Namibia in a deal with Impact Oil and Gas that marks a significant step towards the prospect’s development, the energy major said on Wednesday.
SINGAPORE CASH DEALS O/AS
One gasoline trade, no naphtha deals.
Source: Reuters (Reporting by Mohi Narayan; Editing by Sohini Goswami)