Asia’s gasoline refining profit margin jumped on Wednesday amid hopes of a rise in Australian demand during the summer season, traders said.

The crack Gl92-SIN-CRK climbed to the highest level since Sept. 20 to $12.50 per barrel over Brent crude, compared with $8.20 a day earlier.

“Fewer gasoline exports from China will provide a floor for Singapore gasoline cracks as regional refineries return from maintenance starting this month,” analysts at FGE said in a note.

Asia’s net gasoline deficit, excluding China’s balances but including its exports, will move sideways to around 400,000 barrels per day over November and December, they added.

The naphtha crack NAF-SIN-CRK also gained on Wednesday, although liquidity remained low, traders said.

INVENTORIES

Light distillate stocks at the Fujairah hub rose by 265,000 barrels to 4.499 million barrels in the week to Nov. 6, according to S&P Global Commodity Insights data.

U.S. gasoline inventories fell by about 360,000 barrels, according to market sources, citing American Petroleum Institute figures.

NEWS

– Oil prices remained under pressure after sliding to their lowest in more than three months in the previous session, slipping further on concerns over waning demand in the United States and China.

– Japan’s top refiner Eneos on Wednesday raised its net profit forecast to 240 billion yen ($1.6 billion) for the year ending in March 2024, as higher oil prices and a weaker yen are set to support results after a drop in its quarterly profit.

SINGAPORE CASH DEALS

One gasoline trade, no naphtha trades.
Source: Reuters (Reporting by Mohi Narayan; Editing by Sonia Cheema)