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Asia Gasoline Cracks to Ease in Q3 After Refinery Outages: FGE

OIL PRODUCTS

Asian gasoline cracks are expected to ease back slightly to 10-11$/bbl, but there could be upside risk as the US enters hurricane season according to FGE on 9 June.

  • Asia’s gasoline deficit is expected to narrow from July to August as more refineries return from spring maintenance.
  • Unplanned refinery outages and robust Indian demand have driven Asian gasoline margins to the highest in ten weeks at 13.90$/bbl.
  • Unplanned outages include Viva Energy’s Geelong refinery in Australia and Phillips 66’s Bayway refinery in the US.
  • India’s HPCL recently issued unusual purchase tenders for 76k tons of gasoline for end-June delivery.
  • Asia’s gasoil surplus is expected to widen in 3Q as refineries return from maintenance and due to a seasonal lull in demand.

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