NEW DELHI: Asia’s gasoline refining profit margin rose for a second consecutive session on Thursday after US stocks posted a bigger-than-expected fall, and China reduced its second batch of 2023 fuel export quotas.
The crack climbed to $8.01 a barrel over Brent crude, compared with $7.76 a barrel a day earlier. Market sentiment was also supported by expectation of firm demand in the summer driving season, traders said.
China’s export volumes, comprising 9 million tonnes of refined products and 3 million tonnes of marine fuel, is smaller than the first batch of 18.99 million tonnes in early January, according to two refining sources and consultancies Longzhong and JLC.
The smaller export quota comes as refiners stockpile products amid expectations of strong demand for gasoline and diesel in the peak summer season.
In physical markets, energy trader Unipec bought 50,000 barrels of the higher octane-95 grade of gasoline.
US gasoline stocks fell 3.2 million barrels last week to 219.7 million barrels, the EIA said, exceeding analysts’ expectations for a 1.2 million-barrel drop.
Comments
Comments are closed for this article.