Asia’s gasoline refining profit margin plunged on Wednesday over expectations of rising supplies from China.

The crack slipped to $6.51 per barrel over Brent crude compared with $7.96 in the previous session.

Slower local demand in China after peak driving season and with ongoing monsoons in India has incentivised exports from the two key oil consumers, traders and analysts said.

Meanwhile, exports from India’s Nayara are under threat after fresh EU sanctions. Tanker Chang Hang Xing Yun will not load fuel from the refinery as scheduled, becoming the second such vessel to change plans following the EU measures.

The refiner also did not award a spot naphtha export tender after revising its payment terms, three trade sources said.

The naphtha margin traded at $53.33 per metric ton over Brent crude on Wednesday in a narrow backwardation of 25 cents a ton.

NEWS

– U.S. Energy Secretary Chris Wright said on Fox News on Tuesday that sanctioning Russian oil to end the Ukraine war is a “very real possibility.”
– Nigeria’s Dangote oil refinery is expected to carry out a 40-day planned maintenance at its gasoline-making unit in December, instead of in October as previously planned, industry monitor IIR said.

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Source: Reuters