NEW DELHI: Asia’s refining margin for gasoline flipped to a discount on Tuesday, amid weak fuel demand outlook from the world’s top oil consumer China.
The crack plunged to a discount of 31 cents a barrel, compared with a premium of 27 cents a barrel a day earlier.
China’s strict adherence to its zero-COVID policy has hit fuel demand in the world’s no. 2 economy. The country also delayed release of key economic data, including hotly anticipated third-quarter gross domestic product (GDP) numbers. No date for a rescheduled release has been given.
Meanwhile, naphtha refining profit margin recouped some losses on Tuesday, but the crack continued to trade in the red amid poor petrochemical demand in the region, market sources said.
The crack traded at a discount of $23.70 a tonne, compared with a discount of $45.80 a tonne on Monday.
China is likely this month to export the highest volume of diesel, aviation fuel and gasoline since June 2021 at more than 4 million tonnes, after Beijing’s surprise release of a big batch of quotas, analysts and trading sources said.
Oil prices edged lower on Tuesday on fears of an economic slowdown and lower fuel demand from China as it persists with its stringent zero-COVID policy.
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