NEW DELHI: Asia’s gasoline margin collapsed to August 2020 levels on Friday, posting a loss of over 102% amid fears of a global economic slowdown that could hit demand.
The crack plunged to a discount of $0.14 a barrel from a premium of $3.39 a barrel in the last session.
Worries over a global slowdown are casting a shadow over Asia’s recovery prospects with factory activity growth slowing in Japan and Australia, keeping pressure on policymakers to support their economies while tightening monetary policy to combat inflation.
Meanwhile, gasoline inventories at key trading hubs continue to register large buildups in a bearish signal to markets.
Gasoline stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area rose to a 10-week high of 1.297 million tonnes in the week to Thursday, Insights Global data showed.
Inventories at Singapore and the United States hubs also increased this week, denting demand sentiment.
Oil prices fell on Friday on a weakening global demand outlook and the resumption of some Libyan crude oil output.