Asia’s gasoline margins continued to strengthen on Tuesday, on bullish sentiments regarding the short-term outlook on the market buoyed by gasoline export rebate cuts in China.

The crack climbed to $8.23 per barrel over Brent crude, its highest since July 31.

Regional traders shared they expect the short-term gasoline margins to continue to be on an upward trajectory due to seasonal rise in demand and expect margins to plateau around late Jan.

In naphtha, the margins dipped by $3.71 to settle at $82.97 per metric ton over Brent crude.

The backwardation between second-half January and second-half February widened to $2.25.

NEWS

Oil prices nudged higher on Tuesday but remained within a narrow trading range, as traders awaited the outcome of an OPEC+ meeting later this week.

OPEC+ at its meeting on Thursday is likely to extend its latest round of oil output cuts until the end of the first quarter, four OPEC+ sources told Reuters, to provide additional support for the oil market.

U.S. oil major Exxon Mobil Corp XOM.N is weighing a sale of its petrol stations in Singapore, a deal that could raise about $1 billion, Bloomberg News reported on Tuesday, citing sources.

SINGAPORE CASH DEALS

Two gasoline deals and no naphtha trade.
Source: Reuters (Reporting by Haridas; Editing by Vijay Kishore)