Asia gasoline cracks dip as Indonesia cuts imports, other nations announce curbs

Quantum Commodity Intelligence – Refining margins for gasoline in Asia have fallen to a two-week low, according to Quantum data, amid a resurgence in Covid infection rates that has caused Indonesia to cut fuel imports.

Vietnam and Thailand are also preparing to roll out new travel restrictions that will curb fuel demand.

Spot RON 92 cracks in Singapore dipped more than $0.60/b on Monday as aggressive offers in the S&P Global Platts afternoon trading window pressured spot cracks versus cash Brent. 

Hit by new variants and low vaccination rates, key economies in southeast Asia have been overwhelmed by infection rates, with Indonesia now chalking up almost 50,000 new cases a day over the past week, more than in India and Brazil.

State-owned Indonesian oil company Pertamina is expected to import 10% less gasoline in August than July, market sources said, in a move that is likely to have weighed on prices.

It comes as the wider region approaches peak infections.

Thailand's prime minister said this week that the country will expand its Covid restrictions to curfews and stay-at-home orders.

Vietnam closed non-essential services and told its citizens not to go outside and the Philippines announced new local restrictions.

The gasoline market is awaiting news of Chinese export quotas, with rumours that they are expected to be lower for the remainder of the year, a dynamic that should have underpinned cracks.