Asia’s gasoline cracks increased on Thursday as crude prices fell after OPEC+ delayed a ministerial meeting.

But the refining margins were capped by expectations of sluggish demand in early 2024 amid global economic recession concerns.

China’s oil demand growth is likely to ease in the first half of 2024 to about 4%, consultancies said, with resurgent consumption from the aviation and petrochemical sectors offset by weaker diesel usage owing to a continuing property sector crunch.

On the naphtha front, cracking margins also rose, climbing to a seven-month peak of $49.50 per metric ton, underpineed by physical trading activities. BPSG sold a cargo for loading in the first half of February to Equinor at $651 a ton.

NEWS

– OPEC+ has delayed a ministerial meeting expected to discuss oil output cuts – to Nov. 30 from Nov. 26 – as producers struggled to agree on production levels, OPEC+ sources said. The surprise delay sent oil prices sliding.

– U.S. crude oil inventories rose last week on higher imports while distillate inventories fell to their lowest since May 2022, the Energy Information Administration (EIA) said on Wednesday.

– Venezuela is producing some 850,000 barrels per day (bpd) of oil and hopes to soon reach 1 million bpd, the country’s deputy oil minister said on Wednesday, after a temporary lifting of U.S. sanctions on the nation.

SINGAPORE CASH DEALS

– No deal for gasoline, one deal for naphtha.
Source: Reuters (Reporting by Muyu Xu, Editing by David Goodman)