Asia’s gasoline margins further declined on Friday as supply remained tight amid the ongoing autumn refinery maintenances and refinery run cuts on the back of pervasively weak refining margins.

The crack fell to $4.92 per barrel over Brent crude from $5.18 on Thursday.

Refinery run cuts coupled with poor export margins at one of Asia’s largest suppliers, China, dragged exports down to a mere 320,000 metric tons (mt) for September so far, on track to close far below the YTD monthly average of 820,000 mt and August’s custom volume of 780,000 mt, an LSEG report said.

In the naphtha market, the margins climbed to $107.90 per metric ton over Brent crude.

The Organization of the Petroleum Exporting Countries and its allies will go ahead with a planned oil production increase in December but first need to cut output to address overproduction by some members, two OPEC+ sources said on Thursday.

NEWS

Oil prices held on Friday but remained on track for a weekly fall as investors weighed expectations for increased output from Libya and the broader OPEC+ group against fresh stimulus from top importer China.

Brent crude futures LCOc1 were up 8 cents, or 0.1%, at $71.68 per barrel, while U.S. West Texas Intermediate crude futures CLc1 were up 6 cents, also 0.1%, at $67.73.

INVENTORIES

U.S. gasoline stocks fell by 5.6% to 934,000 tons in the week ending Sept. 26, the Energy Information Administration (EIA) said in its report. Naphtha inventories gained almost 10% to 559,000 tons, the report added.

SINGAPORE CASH DEALS

One gasoline deal and no naphtha trade.
Source: Reuters (Reporting by Haridas; Editing by Sumana Nandy)