SINGAPORE: Asia’s refining profit margins and cash premiums for 10 ppm gasoil fell on Tuesday, as weak manufacturing activity across the world fuelled recession fears and declining fuel demand in India weighed on market sentiment.

Refining margins for 10 ppm gasoil slipped to $35.82 a barrel over Dubai crude in Asian trading hours, compared with $38.11 on Monday.

Cash differentials for gasoil with 10 ppm sulphur content were at a premium of $1.19 a barrel to Singapore quotes, down from $1.76 per barrel in the last session.

Factories across the United States, Europe and Asia struggled for momentum in July as flagging global demand and China’s strict COVID-19 restrictions slowed production, surveys showed on Monday, likely adding to fears of economies sliding into recession.

“India’s diesel demand is expected to cool this quarter as the onset of the monsoon season hampers construction activities, although this is likely to be partially offset by a seasonal increase in Chinese domestic diesel demand,” Serena Huang, head of APAC analysis at energy consultancy Vortexa said in a note.

Gasoline and gasoil sales by Indian state refiners in July fell from a month earlier as monsoon rains restricted mobility and construction.

One gasoil trade, no jet fuel deals. 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.