Asia’s gasoline margin fell below $8 per barrel on Thursday despite large draws in Singapore and U.S. inventories, tracking a broader weakness in crude oil benchmarks.

The crack declined to $7.43 per barrel over Brent crude, compared with $8.34 in the previous session.

Traders and analysts said markets may have already priced in the impact of U.S. tariffs on Canadian and Mexican imports and going into the summer demand season, cracks are expected to rise.

In naphtha markets, price for second-half April naphtha slipped by $8.50 to $632.50 per metric ton over Brent crude and the backwardation narrowed by $1.50 but remained steep at $13 per ton.

In tenders, PT Lotte Chemical Indonesia sought second-half April naphtha, market participants said. The company was expected to start production at its ongoing petrochemical project in March and exports in May, Indonesia’s minister of investment had said in Sept. 2024.

INVENTORIES

U.S. gasoline stocks fell by 1.4 million barrels last week to 246.84 million barrels, the government said, compared with analysts’ expectations in a Reuters poll for a 400,000-barrel drop.

Singapore light distillate stocks shrank by 1.24 million barrels to a six-week low of 15.277 million barrels in the week to March 5, Enterprise Singapore data showed. ​

NEWS

– Mexican fuel oil cargoes are heading to Asia and Europethis month as higher prices draw supply, while traders eye more diversions after U.S. President Donald Trump imposed tariffs on imports this week, trade sources and analysts said.

– OPEC oil output rose in February, a Reuters survey found, as Iranian exports held strong, despite renewed U.S. attempts to curb the flows, and Nigeria boosted output above its target within the wider OPEC+ group.

SINGAPORE CASH DEALS

One gasoline trade and one naphtha deal.
Source: Reuters