Asia’s gasoline markets softened on Monday after rising about 7% last week amid speculation around China’s fuel export quota for next year.

The crack GL92-SIN-CRK was down about 90 cents to $8.97 per barrel over Brent crude. At the deals window, energy trader Vitol snapped up 250,000 barrels of benchmark-grade of the fuel, capping the downside.

“If the first batch for 2024 is larger than that for 2023 (which was around 19 million metric tons), gasoline cracks could plummet. This is despite limited upside to outflows from China ahead of the Lunar New Year holiday,” energy consultancy FGE said in a note late Friday.

The quotas are expected to be announced during the last week of December or early January, traders said.

NEWS

– Oil prices held steady on Monday as U.S. efforts to replenish strategic reserves provided support, though concerns persist about oversupply and softer fuel demand growth next year.

– The COP28 climate negotiations entered crunch time on Monday with countries set for a final summit face-off over whether to reach a global agreement to phase out fossil fuels.

SINGAPORE CASH DEALS O/AS

Five gasoline trades, no naphtha trades.
Source: Reuters (Reporting by Mohi Narayan; Editing by Eileen Soreng)