Asia’s gasoline refining profit margin rose above $11 per barrel on Friday, buoyed by strong demand as the summer season approaches. Market participants noted that demand for the higher 95-octane grade of gasoline remained strong for the fourth consecutive session. Additionally, Singapore’s light distillate stocks have seen a significant decline, dropping by 2.408 million barrels to a six-month low of 13.212 million barrels in the week ending April 30, according to data from Enterprise Singapore.
The gasoline stocks held at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub also saw a marked decrease, falling over 5% in a week to reach 1.207 million tons, based on data from Dutch consultancy Insights Global. In contrast, ARA naphtha stocks increased to 596,000 tons from 479,000 tons within the same period. In the naphtha market, the refining profit margin remained stable at around $99 per metric ton over Brent crude.
In terms of recent news, oil prices dipped on Friday as traders adjusted their positions ahead of an upcoming OPEC+ meeting. There is also lingering skepticism surrounding a potential easing of the trade tensions between China and the United States. Bharat Petroleum Corp Ltd, an Indian fuel retailer, reported that it anticipates a net gain of $20 to $30 per ton on U.S. liquefied petroleum gas deliveries through a swap deal with Middle Eastern suppliers, according to their head of finance.
In Singapore, two gasoline deals were reported during this period, indicating ongoing activity in the market.