Asian gasoline cracks rebound on lower-than-expected US build

London, (Quantum Commodity Intelligence) - Gasoline refining margins in Asia rebounded on Thursday after the US Energy Information Agency reported a lower-than-expected build in weekly stocks a day earlier, Quantum data shows.

Gasoline spot refining margins for 92 RON FOB Singapore versus June cash Brent rose to $7.35/b, as the US reported a 300,000-barrel build – far outstripping a near-800,000 barrel build that a poll of analysts conducted by Reuters showed.

Also known as the crack, the figure was up 40 cents on the day and the highest in more than a week.

But while gasoline cracks rallied, those in middle distillates flatlined despite a far bigger draw on stocks than expected.

Analysts had predicted a near 1-million barrel increase versus figures that showed a 2.1 million barrel draw.

Nevertheless diesel and jet cracks struggled to rise, given the recent rally that has seen jet fuel cracks hit their highest in more than six weeks on the expectation that a northern hemisphere summer will kickstart jet fuel demand.

Such hopes have seen the jet kero discount to 10ppm FOB Singapore narrow from $3/b to $2.35/b.

Diesel 10ppm cracks were marked at $3.83/b on Thursday FOB Singapore, down just 2 cents on the day, while jet spot cracks versus the same cash Brent June contract were $1.48/b, down just 5 cents on the day.