Asia’s gasoline margins climbed to more than a 15-week high, buoyed by lower export capacity from China, with regional players capitalising on this.

The crack rose to $7.06 per barrel over Brent crude, its highest since Aug. 2.

An LSEG report stated that “amid expectations of thinning outflows from China, while Indian barrels may possibly be drawn away from the region amid upcoming turnarounds in the Middle East. The potential drop in supplies could provide some support to price benchmarks in the near term, although a lack of fresh demand outlets may cap this upside.”

In naphtha, the margins dipped by $2.83 to $85.45 per metric ton over Brent crude.

Refining margins for naphthahave dipped due to the persistently poor downstream petrochemical margins, while demand remained dampened by reduced operating rates at ethylene crackers in the region.

NEWS

Oil prices edged higher in early trade on Tuesday after falling in the previous session as investors took stock of a potential ceasefire between Israel and Hezbollah, weighing on oil’s risk premium.

The supply of oil and gas will be plentiful, with oil markets being “comfortable” this year and next unless major geopolitical escalation happens, the head of the International Energy Agency (IEA) Fatih Birol told a conference in Norway on Tuesday.

SINGAPORE CASH DEALS

One gasoil deal and no naphtha trade.
Source: Reuters (Reporting by Haridas)