Asia’s gasoline margins dipped further on a bleak Wednesday, as lower seasonal demand is having a major impact in the market.

Saudi Aramco emerged as the biggest seller, selling 80% of the total number of barrels of the benchmark grade of octane traded.

The crack fell to $2.79 per barrel over Brent crude, its lowest since Oct. 18, 2023.

In naphtha, the crack inched down to $114.68 per metric ton over Brent crude.

The backwardation between second-half November and second-half December strengthened to $4.

INVENTORIES

Light distillate stocks, including naphtha and gasoline, at the Fujairah commercial hub rose by 514,000 barrels to 5.188 million barrels in the week to Sept. 30, S&P Global Commodity Insights data showed.

Gasoline inventories rose by 437,000 barrels, and distillate stocks fell by 2.67 million barrels, in the week ending Sept. 27, according to market sources citing the American Petroleum Institute.

NEWS

Oil prices climbed more than 2% on Wednesday on rising concerns that Middle East tensions could escalate, potentially disrupting crude output from the region, following Iran’s biggest ever military blow against Israel. Brent LCOc1 futures leapt $1.63, or 2.2%, to $75.19 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 spiked $1.70, or 2.4%, to $71.53.

The Saudi oil minister has said that oil prices could drop to as low as $50 per barrel if OPEC+ members do not stick to agreed-upon production limits, the Wall Street Journal reported on Wednesday citing delegates from the oil producers group.

Major energy companies are set to borrow billions to maintain shareholder payouts or cut the rate of share repurchases in the face of a drop in oil prices after more than two years of bumper profits.

SINGAPORE CASH DEALS O/AS

Six gasoline deals and no naphtha trade.
Source: Reuters (Reporting by Haridas; Editing by Shreya Biswas)