NEW DELHI: Asia’s refining profit margins and cash premiums for 10 ppm gasoil fell on Monday as weak manufacturing activity in China and tepid July fuel sales in India weighed on market sentiment.
Refining margins for 10 ppm gasoil slipped to $38.11 a barrel over Dubai crude in Asian trading hours, compared with $41.60 on Friday.
Cash differentials for gasoil with 10 ppm sulphur content were at a premium of $1.76 a barrel to Singapore quotes, down from $1.87 per barrel in the last session.
China’s manufacturing purchasing managers’ index (PMI) eased to 50.4 in July from 51.7 in the previous month. The reading was well below analysts’ expectations for a slight dip to 51.5. The economic slowdown in world’s top oil importer has jolted industrial production and consumer spending.
Meanwhile, India’s gasoil demand in July fell by about 16% to 6.42 million tonnes as truck mobility was hit by monsoon rains. Rains also affected demand from the agriculture sector where gasoil is used to power gensets for irrigation.
Gasoil accounts for about two-fifths of India’s overall refined fuel consumption and is directly linked to industrial activity in Asia’s third-largest economy.
Comments
Comments are closed for this article.