Asia’s gasoline refining margin fell blow $8 per barrel for the first time in four months on Tuesday, mirroring a weakness in global markets and over fears that high pump prices could dent fuel demand across major markets, traders and analysts said.

The crack GL92-SIN-CRK fell to $7.67 a barrel over Brent crude and the price for benchmark grade of fuel plunged below $100 per barrel.

“Tensions over the need to limit the burden of fuel subsides are set to return, and higher prices will likely be passed on to consumers. Even in countries without subsidies, flat prices are on the rise,” analysts at energy consultancy FGE said in a note.

Meanwhile, in naphtha markets, activity remained thin at the deals window, with the crack NAF-SIN-CRK trading steady at about $11 per metric ton.

QatarEnergy and Japan-based Marubeni Corp signed a 10-year naphtha supply agreement to provide up to 1.2 million metric tons per annum to the Japanese trading house from October 2023.

NEWS

Indonesia’s Kilang Pertamina Internasional, the refinery unit of state energy firm Pertamina, aims to finish revamping its petrochemical plant Trans-Pacific Petrochemical Indotama (TPPI) in the fourth quarter of this year.

Egypt awarded on Tuesday four blocks in an oil and gas exploration bid round for concessions in the Mediterranean and Nile Delta to Italy’s Eni, BP, QatarEnergy and Russia’s Zarubezhneft, the petroleum ministry said.

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Source: Reuters (Reporting by Mohi Narayan; Editing by Krishna Chandra Eluri)