Asian gasoline prices soar on reports of China export suspension

Quantum Commodity Intelligence – Asian gasoline prices rose sharply on Wednesday amid reports that China has told trading houses not to export the key transport fuels gasoline ad diesel (gasoil), due to energy security fears.

92 RON cargoes loading in Singapore in the next 15-30 days were assessed at $150.15/barrel on Wednesday at 1630 Singapore time, equivalent to $1,276 per metric ton, FOB, up $8.86/b on the day versus a $4.64/b rise in the price of Brent crude.

One cargo was heard changing hands at $3.10/b above the underlying swaps curve at 1630 Singapore time for loading 15-20 days forward and bids were seen at $3/b above swaps for later dated cargoes.

Swaps were trading at $149.85/b for March and $143.20/b for April.

The hike in prices leaves refining margins for gasoline at $21.28/b versus a rolling average mix of front-month and second-month Brent crude futures, the highest level in more than a decade and one of the steepest one-day increases on record.

Further down the curve, paper cracks also jumped with April swaps versus June Brent spiking $2/b overnight to $17.68/b.

The rise comes amid reports from S&P Global Platts and China's JLC pricing agency that China's National Development and Reform Commission has asked oil companies to suspend gasoline and gasoil exports for April amid concerns of energy inflation in the world's second-biggest economy.

Gasoline and gasoil prices have climbed sharply since Russia's invasion of Ukraine, largely outpacing crude, on fears that access to credit lines, shipping and insurance is hampering Russian exports of oil products.

Last year, China exported more than 1 million mt of gasoline per month, or around 280,000 bpd, making it one of the largest exporters in the region.