Asia’s gasoline refining profit margin ended the month with about 21% gains, buoyed by a rise in cargo demand from Mexico and tightening regional balances, market sources said.

The crack rose for a fifth straight session on Wednesday to $11.59 per barrel over Brent crude.

“In summers, it is cheaper to buy from Asia,” a Singapore-based industry source said.

Mexico’s Pemex has imported about 74,000 barrel per day of gasoline from Asia including Singapore, China and South Korea, the highest since September 2023, according to preliminary ship-tracking data from OilX. Mexico’s imports from the United States were little changed at about 422,000 bpd, the data showed.

In the naphtha market, the crack was up about 10% in April at $98.93 per metric ton over Brent crude amid hopes of rising demand from China, although gains were capped on the possibility of a tariff waiver on U.S. ethane, an alternative feedstock.

Among purchases, South Korean GS Caltex and YNCC were said to be seeking first-half June naphtha, while BPCL and HPCL, two Indian refiners, offered about 30,000 tons of the product each for May this week, market participants said.

Qatar Energy also offered 25,000 tons of naphtha for May, they added.

NEWS

– China has waived the 125% tariff on ethane imports from the United States imposed earlier this month, two sources with knowledge of the matter said on Tuesday.

– SK Innovation Co Ltd, owner of South Korea’s biggest oil refiner SK Energy, swung to an unexpected operating loss in the first quarter on weaker oil prices, but forecast a recovery in refining margins in the second quarter.

– Oil prices extended declines on Wednesday and were set for their largest monthly drop in almost three and a half years as the global trade war eroded the outlook for fuel demand, while concerns over mounting supply also weighed.

SINGAPORE CASH DEALS

Two gasoline trades.
Source: Reuters