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FGE Expect Lower Run Rates in Asia Amid Weaker Margins

OIL

FGE has cut the forecast for crude processing rates in Asia by about 200kb/d in May and June according to a note from April 26.

  • The cut is partly due to expectations of lower runs from exporters in South Korea and Taiwan amid weaker margins.
  • “With the weakening product markets and deteriorating refining margins in recent weeks, the next big question in the oil market is where would we start to see run cuts?”
  • The Singapore Gasoil to Dubai crack has fallen from a high of $28.6/bbl in February to the lowest since May 2023 around $14.0/bbl according to Bloomberg.

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