Asia’s gasoline margins slipped on Tuesday, even as 300,000 barrels of the benchmark grade of octane exchanged hands at the closing window.

The margins fell to $8.65 per barrel over Brent crude, from $9.05 on Monday.

Regional traders attributed this dip to the ample regional stockpile and a lack of fresh demand outlets. However, they remain optimistic that margins will rise nearing the final weeks of the year, due to the cutback in overall supply.

In naphtha, the margins held steady, climbing by $0.25 to $90.88 per metric ton over Brent crude.

Traders said there is a bullish sentiment on the light disitillate margins due to rising demand from new Chinese cracking capacity due to come online early next year.

The backwardation between first-half February and first-half March narrowed to $4.50.

NEWS

Oil prices were down on Tuesday as China’s economic data renewed demand concerns, while investors remained cautious ahead of the U.S. Federal Reserve’s interest rate decision.

Shell began restarting the crude distillation unit (CDU) at its 233,702 barrel-per-day (bpd) Norco, Louisiana, refinery, people familiar with plant operations said on Monday.

SINGAPORE CASH DEALS

Three gasoline margins and no naphtha trade.
Source: Reuters (Reporting by Haridas; Editing by Arun Koyyur)