Asia’s gasoline margins dipped as lower seasonal demand impacted the market and affected market sentiments.

The crack dipped to a year’s low of $3 per barrel over Brent crude, its lowest since Oct. 18, 2023.

Explaining the exponential drop in gasoline margins, a regional trader shared that “due to the end of seasonal demand, there is not much demand for gasoline. Even some delay due to bad weather also do not stir up the market, and overall market is sluggish”. “Although maybe Australia’s driving season will support the market, but as of now there is not much push in the market,” he added.
In naphtha, the crack gained for the fourth straight session and reached a 10-month high of $115.25 per metric ton over Brent crude, its highest since Dec. 18, 2023.

NEWS

Oil prices slid by more than 2% on Tuesday as a stronger supply outlook and tepid global demand growth outweighed fears over escalating conflict in the Middle East and its impact on crude exports from the region. Brent crude futures LCOc1 were down $1.49, or 2.08%, at $70.21 a barrel. U.S. West Texas Intermediate crude futures CLc1 lost $1.55, or 2.27%, to $66.62.

U.S. oil demand rose in July to the highest seasonal level since 2019, while output declined for the second time in three months, data from the U.S. Energy Information Administration showed on Monday.

The U.S. has bought 6 million barrels of oil for the Strategic Petroleum Reserve for delivery through May 2025, the Department of Energy said on Monday. The U.S. bought 3.5 million barrels from Exxon Mobil XOM.N, 2 million from Shell Trading Company, and 500,000 from Macquarie Commodities Trading US, for a total cost of more than $411 million, the department said.

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Source: Reuters (Reporting by Haridas; Editing by Vijay Kishore)