NEW DELHI: Asia’s refining profit margin for gasoline plunged to its lowest since April 20 on Wednesday after China issued five million tonnes of fuel export quotas.
The crack dropped to $18.21 a barrel from $26.19 in the last session, Refinitiv Eikon data showed.
The new China quotas, which were issued earlier than expected, will bring the total refined fuel export quotas this year to 22.5 million tonnes.
“Even if nine tonnes of additional export quotas could be granted for second half of the year, total export quotas will remain 30% lower year-on-year,” consultancy Energy Aspects said in a note. In physical markets, energy trader ENOC continued its buying spree for a fourth straight day and purchased a total of 150,000 barrels of 95-octane gasoline.
Meanwhile, the naphtha crack jumped to highest since May 23 to $41.95 a tonne from $1.88 a tonne a day earlier.
Light distillates stocks at the Fujairah Oil Industry Zone (FOIZ) rose by 385,000 barrels to a three-week high of 5.822 million barrels in the week to July 4, according to S&P Global Commodity Insights.
India’s latest measures aimed at boosting domestic oil supplies could reduce its diesel and gasoline exports in the second half of the year, keeping global supplies tight and underpinning prices, traders and analysts said.
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