October 05, 2023 08:21 GMT
China Export Decline if No New Quotas Could Support Cracks
A decline in exports from China could help to limit the fall in Asian gasoline cracks according to S&P Global citing market participants.
- "I think China's exports should drop if there is no new quota. Also, export margins went down, so there's less incentive for China to export," an industry source said.
- A narrowing US-RBOB Brent crack, which some participants consider as the primary factor, is adding to the pressure on the Asian market.
- Market participants also suggested stronger domestic gasoline prices above international gasoline prices were discouraging exports. Increased travel amid the Golden Week holiday could add to domestic demand for gasoline in China.
- Demand from Mexico was expected to fall in October with just three-four cargoes from Asia this month compared to 10 in September following the end of the summer driving season.