Asian gasoline cracks hit three-week high on strong US demand

London, (Quantum Commodity Intelligence) - Asian gasoline cracks rallied to their highest level in more than three-weeks on Wednesday as firmer cracks in the US widened the east-west spread and pulled up the value of gasoline globally.

Recovering demand in the US, which is expected later to post a big crude draw and a moderate build in gasoline stocks, injecting some upward pressure in global gasoline markets, with the main benchmark for Asia hitting the highest level in more than a week.

RON 92 cracks versus cash Brent hit $5.95/b basis FOB Singapore at 1630 local time on Wednesday, up $0.57/b on the day and the highest level since 28 May.

The move comes as global cracks rose, with US paper cracks for July versus Brent rising $1.50/b overnight to $21.40/b, according to broker data.

That pulled the east-west spread wider to $23.50/mt for July, up $2/mt in a day.

The move comes as crude oil stocks are expected to have fallen sharply last week, creating only a small build in gasoline as US refinery rates ramp up amid the US driving season.