Asia’s gasoline refining profit margin extended last week’s gains on Monday amid lower exports from China and firm demand ahead of the driving season in the United States, the biggest market for the fuel.
The crack rose to $10.96 per barrel over Brent crude, compared with $9.97 in the previous session.
April exports from China are on course to be lower than the first-quarter monthly average of about 345,000 metric tons, with just 175,000 tons shipped so far, also below the 2024 monthly average of 810,000 tons, according to LSEG’s assessments.
“Outflows are expected to remain capped in May with around 1.8 million bpd of China’s refining capacity offline for maintenance,” LSEG Research said in a note.
The naphtha crack declined by about $5 to $83.70 per metric ton on Monday as hopes of reviving demand in China were dashed by rumours of the removal of tariffs on U.S. ethane, an alternative cheaper feedstock.
NEWS
– South Korea’s S-Oil, majority owned by Saudi Aramco 2223.SE, posted losses in the first quarter from its refining and petrochemical units and expects second-quarter margins to be impacted by U.S. tariff negotiations and market volatility.
– The world’s biggest oil exporter, Saudi Arabia, may slightly increase its crude prices for Asian buyers in June for the first time in three months, tracking gains in benchmark prices this month, refiners said on Monday.
SINGAPORE CASH DEALS
Two gasoline trades.
Source: Reuters