Asia’s gasoline margins dipped on Monday, as concerns around demand to linger due to high regional inventories.
The crack fell to $3.20 per barrel over Brent crude, from $4.15 on Friday.
Saudi Aramco emerged as the biggest seller in the window yet again, selling 75% of the total number of 92-gasoline barrels that were traded during the session.
China’s Oct. 1-7 Golden Week holidays are expected to drive demand for gasoline with a projected 1.94 billion inter-city trips, up 0.7% on-year, according to the Ministry of Transport.
However, the rise in demand over this period is likely to be lower in comparison to last year given the rapid take-up of electric vehicles, an LSEG report said.
Asia’s net gasoline exports declined to a 15-month low of 3.43 million metric tons in September, down from August’s 3.5 million tons and below the year-to-date monthly average of 4 million tons, a report from LSEG said.
Traders said that along with the increased regional gasoline inventories, there could be a further weakening in demand, which would likely cap the upside to Asian gasoline benchmarks.
In tenders, India’s MRPL was offering 75,000 metric tons of reformate for Oct. 26-27 loading, the company’s website showed. The tender closes on Oct. 7.
In naphtha, the crack dipped by $4.63 to $117.75 per metric ton over Brent crude.
NEWS
* Oil prices fell on Monday, after posting their steepest weekly rise in more than a year last week, as oversupply concerns amid softer demand countered the worries over a wider Middle East conflict disrupting exports in the key oil-producing region.
* Shell’s SHEL.L refining profit margins dropped sharply in the third quarter by nearly 30% to $5.5 a barrel in the three months to the end of September from $7.7 a barrel in the previous period.
* Top oil exporter Saudi Arabia has raised the November price for its flagship Arab light crude to Asia to its highest levels since July.
SINGAPORE CASH DEALS O/AS
Four gasoline deals and no naphtha trades
Source: Reuters (Reporting by Haridas; Editing by Varun H K)