Asian gasoline cracks rise again as crude firms

Quantum Commodity Intelligence - Asian gasoline refining margins rose for the sixth consecutive session on Tuesday to their highest level in more than a year, amid higher crude futures and reports of increased demand from India and a lack of exports from China.

Spot cracks hit a high of $9.27/b FOB Singapore by 1630 local time, up $0.17/b on the day amid robust demand for both 92 RON and 95 RON in the Platts trading window.

Three deals were heard for 92 RON at $86.98-87/b FOB Singapore with one deal for 95 RON heard at $89.60/b FOB Singapore.

The rise in cracks comes as crude oil rallied in the morning more than $1/b, but gasoline demand kept pace, with the RON 92 ratio to Brent steady at 112%.

Typically, positive cracks rise when crude prices go up with the opposite happening for negative cracks.

The rise in cracks in Asia also comes as paper cracks were largely stable to softer in the US and Europe.

Google mobility data shows that regional demand for gasoline is picking up alongside refining throughputs, with average 7-day Indian mobility just 15% below the pre-pandemic level versus 20% below last week.

Meanwhile, reports emerged that China was expected to export less gasoline than before due to changing restrictions on imports of light cycle oil.

The rise in prompt demand for gasoline has widened the August-September spread to $1.60/b versus $1.25/b on Monday and just $1/b last week.

Yet while prompt cracks rose, Q4 cracks fell $0.20/b to $7.00/b, according to Quantum data.