NEW DELHI: Asia’s gasoline crack declined on Tuesday as investors fretted over weak global fuel demand outlook amid rising supplies worldwide.
The refining profit margin slipped to $8.63 a barrel from $9.62 a barrel on Monday. Gasoline margins have been on a downtrend since July over dwindling demand.
Factories across the United States, Europe and Asia struggled for momentum in July as falling global demand and China’s strict COVID-19 restrictions slowed production, data showed on Monday.
Meanwhile, the naphtha crack flipped to a premium of $4.35 a tonne, compared with a discount of $18.38 a tonne a day earlier, as crude oil benchmarks weakened.
Naphtha supplies into the region incrementally increased in July, supported by high exports from the Middle East and India.
Total naphtha flows into Asia jumped by 6% in July from June to 5.8-5.9 million tonnes, assessments by Refinitiv Oil Research showed.
Oil slipped on Tuesday as investors absorbed a bleak outlook for fuel demand with data pointing to a global manufacturing downturn just as OPEC+ producers meet this week to decide whether to increase supply.