NEW DELHI: Asia’s refining margins for 10ppm gasoil and jet fuel dropped to the lowest since May 26 on Thursday after fears of a global recession stoked demand concerns.
Refining profit margins, or cracks, for the 10 ppm gasoil grade slipped to $41.46 a barrel over Dubai crude, Refinitiv Eikon data showed. The cracks were at $46.80 in the previous session.
Margins for jet fuel were down $5.41 at $34.66 a barrel over Dubai crude during Asian trading hours.
Cash differentials for jet fuel slipped by 47 cents to a premium of $1.63 a barrel to Singapore quotes on Thursday. Cash premiums for gasoil with 10 ppm sulphur content were down 70 cents at $4.24 a barrel to Singapore quotes.
Singapore stocks of middle distillates decreased by 259,000 barrels to a four-week low of 7.671 million barrels in the week to July 6, Enterprise Singapore data showed.
US distillate stocks fell by about 635,000 barrels, market sources told Reuters, against analysts’ expectation of a rise by about 1.1 million barrels in a Reuters poll.
Oil prices were steady on Thursday after steep losses in the previous two sessions, as investors returned their focus to tight supply even as fears of a global recession persisted.