Asian gasoline Q4 cracks rise to 2021 high
Quantum Commodity Intelligence – Refining margins for gasoline in Asia in the fourth quarter of the year have risen to their highest level in more than six months amid a steeper backwardation in the crude market and on growing confidence of more mobility this year.
RON 92 cracks for Q4 versus front line cash Brent hit $6.75/b FOB Singapore in early trade on Thursday, up just $0.03 on the day but reaching the highest level since December.
A strong nearby curve helped pull up the paper cracks, with August cracks reaching $7.74/b, up $0.28/b on the day, as tighter stocks in Singapore and a return to Indian demand provided support.
The August-September spread widened from $0.75/b on Wednesday to $1/b on Thursday, indicating a wider backwardated structure supported by near-term demand.
The rise in cracks in Asia outpaced that in both the US and Europe by 1630 Singapore time, according to broker data.
Singapore stocks fell 5% on the week to the lowest in three weeks, adding some support and they remain 10% below the average so far this year.
In addition, on Thursday preliminary data from India was published, showing a strong resurgence in demand for gasoline.
According to the data released by state-refiners, gasoline sales reached 2.21 million mt in June, up 30% on the month, but down 10% on June 2019 figures.
