Asia’s gasoline refining margin firms, naphtha continues losing streak

SINGAPORE: Asia’s gasoline refining profit margin firmed on Wednesday, buoyed by robust demand as peak summer demand season in the United States and Europe kicks off amid a tight market.

The crack rose to $29.61 a barrel from $27.61 in the previous session.

“Recovering fuel demand across the region on the back of loosening mobility restrictions continues to offer broad fundamental support for the market,” said Charles Ong, senior analyst of Refinitiv Oil Research team, in a note.

“Increased travelling anticipated across the summer months in the US and Europe likewise help prop up price markers,” he added.

Stocks of light distillates at Fujairah Oil Industry Zone (FOIZ) decreased by 287,000 barrels to 6.314 million barrels in the week to May 30, according to industry information service S&P Global Commodity Insights.

Asia’s naphtha crack fell for a tenth consecutive session to minus $38.03 per tonne on Wednesday from minus $27.10 in the previous session due to frail demand.

Oil prices firmed on Wednesday after European Union leaders agreed to a partial and phased ban on Russian oil and as China ended its COVID-19 lockdown in Shanghai.