Asia’s gasoline refining profit margin ended the week nearly 12% lower after China’s export quotas report lifted bets for higher supplies in a volatile market.

The crack GL92-SIN-CRK was up 96 cents at $13.99 a barrel over Brent crude on Friday amid a huge fall in U.S. inventories. The price of the benchmark grade of the fuel rose to $103.90 per barrel.

U.S. gasoline stocks USOILG=ECI fell 2.7 million barrels in the week, government data showed, compared with analysts’ expectations in a Reuters poll for a 950,000-barrel drop.

European inventories rose by 6.2% to 1.43 million metric tons despite stronger exports to North America, Insights Global data showed.

Markets were also abuzz with speculation that China’s third batch for transport fuels export quota ended up being confirmed at about 2 million tons higher than expected, traders said.

In physical markets, energy trader P66 was active for a second straight day. The company bought 100,000 barrels of the 92-octane grade of gasoline. South Korean SK Energy bought 50,000 barrels of the same grade.

NEWS

– The gasoline-producing fluidic catalytic cracker (FCC) was shut at Marathon Petroleum’s 593,000 barrel-per-day (bpd) Galveston Bay Refinery in Texas City, Texas, after a fire on Thursday night, said three people familiar with the plant.

– Saudi Arabia faces the risk of an economic contraction this year following its decision to extend crude production cuts, highlighting its still heavy reliance on oil as reforms to diversify are slow-moving.
Source: Reuters (Reporting by Mohi Narayan; Editing by Shweta Agarwal)