Asia’s gasoline refining profit margin retreated on Thursday after inventories at major trading hubs showed large build-ups.

The crack for gasoline slipped to $6.50 per barrel over Brent crude, compared with $6.82 a day earlier.

U.S. gasoline stocks rose by 2.1 million barrels in the week to 230.9 million barrels, the Energy Information Administration (EIA) said on Wednesday, compared with analysts’ expectations in a Reuters poll for a two million-barrel build.

Singapore’s light distillate stocks rose by 1.518 million barrels to a one-year high of 16.215 million barrels in the week to June 5, Enterprise Singapore data showed. ​

Meanwhile, the naphtha crack fell by about $10 to $61.50 per metric ton over Brent crude on Thursday after crude oil benchmarks gained.

NEWS

– Oil prices extended gains on Thursday with support from growing expectations of an interest rate cut from the U.S. Federal Reserve in September, even as the upside was capped by an OPEC+ plan to increase supply and higher U.S. inventories.

– A rally in Asia’s high-sulphur fuel oil (HSFO) market, boosted by lower Middle East exports and OPEC+ cuts, is expected to take a breather as Russian exports remain elevated and will ease tight supply, industry sources said.

SINGAPORE CASH DEALS

Three gasoline trades.
Source: Reuters (Reporting by Mohi Narayan; Editing by Ravi Prakash Kumar)