NEW DELHI: Asia’s gasoline refining profit margin inched higher on Monday amid high blend stock prices and soaring seasonal demand, market watchers said.
The crack rose to $31.86 a barrel, up 59 cents from the last close. Gasoline margin also drew support from a fall in Chinese supplies against the backdrop of already tight markets.
China’s May gasoline exports fell 45.5% from a year earlier despite stalling domestic demand, as companies ran short of export quotas, Chinese customs data showed on Saturday.
“Roofing octane prices and persistent inter-product competition for refinery yields will continue to exacerbate gasoline supply tightness this summer,” consultancy Energy Aspects said in a report.
Meanwhile, the naphtha crack in the region also gained on Monday, although the margin continued to trade at a discount of $32.73 a tonne, compared with a discount of $66.43 per tonne on Friday.
Oil prices rose on Monday in volatile trade, reversing earlier losses, as tightening supplies outweighed concerns about slowing global economic growth and fuel demand.
Comments
Comments are closed for this article.