Asia’s gasoline markets weakened for a third straight session on Wednesday on fears about a rise in supplies from China amid a broader fall in refined oil products recently.

The crack slipped to the lowest level since Jan. 10 at $8.78 a barrel over Brent crude oil.

However, analysts and traders expect margins to rebound going into the summer driving season.

“Despite the spot pressure, some of which may be sentiment-driven like fears about Chinese gasoline exports, we continue to expect cracks to rebound into the summer on seasonal support and octane tightness,” analysts at consultancy FGE said in a note.

Meanwhile, the naphtha crack tanked by about $17 to $50.48 a tonne due to reduced demand from petrochemical units in the region.

INVENTORIES

Light distillates stocks at the Fujairah commercial hub declined by 1.692 million barrels to 6.873 million barrels in the week to April 24, S&P Global Commodity Insights data showed.

Gasoline inventories in the United States registered a larger-than-expected fall of about 1.9 million barrels, market sources said.

NEWS

– Russian Deputy Prime Minister Alexander Novak said on Wednesday that OPEC+, the group of leading oil producers, remains an efficient tool for coordination on global oil markets.

– Oil rose on Wednesday after plunging more than 2% in the previous session as reports of falling U.S. crude oil and fuel inventories refocused investors on robust demand in the world’s top oil consumer.

SINGAPORE CASH DEALS

Two gasoline trades, no naphtha trades.
Source: Reuters