OIL PRODUCTS
Asian refiners would prefer to see OPEC+ rollover its production cuts into H2 as it prioritises oil prices and stronger crack spreads over crude supply security, Platts said.
- Neither the ongoing OPEC+ voluntary cuts, nor geopolitical tensions in the Middle East have affected crude or feedstock supplies in the region.
- China and India’s imports of Russian crudes has also left ample supply of Persian Gulf barrels for other Asian importers.
- The preference for Asian refiners is for OPEC+ to maintain current output cuts: any surprises that could cause a sharp change in oil prices could hit either margins or demand, Platts said.
- Demand in the region has been tepid, led by lukewarm economic activity on the continent.
- This has put pressure on the region’s product cracks, with FOB Singapore 10ppm sulphur gasoil cracks versus Dubai crude at $14.49/b May 29, compared to an average of $16.83/b in April.
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