Asia’s gasoline refining profit margin was down on Thursday even as inventories at key trading hubs decreased.

The crack fell to $8.62 per barrel over Brent crude, compared with $9.26 in the previous session.

Cracks are declining “due to higher Chinese and Indian supply,” June Goh, analyst at Sparta Commodities, said.

“Refinery run rates are up with good margin for gasoil, thus they will still make gasoline at the margin,” Goh added.

Singapore light distillate stocks fell to a 36-week low at about 12 million barrels in the week to July 9, Enterprise Singapore data showed.

U.S. gasoline stocks fell by 2.7 million barrels in the week to 229.5 million barrels, the EIA said, nearly double expectations for a 1.5 million-barrel draw.

NEWS

– Oil prices declined moderately on Thursday as investors weighed the potential impact of U.S. President Donald Trump’s tariffs on global economic growth.
– Nigeria’s Dangote petroleum refinery will construct storage tanks in Namibia to hold at least 1.6 million barrels of gasoline and diesel to supply refined fuel to southern Africa, two sources told Reuters.

SINGAPORE CASH DEALS

One gasoline trade.
Source: Reuters