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Asia Gasoline Cracks Supported by Middle East Turnarounds: FGE

OIL PRODUCTS

Heavy maintenance in the Middle East and lower gasoline exports from China will support the East of Suez gasoline market in coming weeks according to FGE last week.

  • The Middle East is expected to see 350kb/d of refining capacity out of service in December. Saudi Aramco’s 235kb/d Yanbu refinery and OQ’s 116kb/d Sohar refinery will be offline for scheduled turnarounds next month.
  • FGE estimates Asian gasoline cracks will find a floor at $7-$8/bbl in December.
  • India with have less supply available for export at the start of 2024 due to a heavy maintenance schedule creating more opportunity for on-spec winter diesel from East Asia to Europe.

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