In April, the gasoline refining profit margin in Asia saw a significant increase of approximately 21%. This surge was driven by an upturn in cargo demand from Mexico and a tightening of regional supply dynamics, according to market insiders. By the end of the month, the crack spread rose for the fifth consecutive session, reaching $11.59 per barrel over Brent crude.
A Singapore-based industry expert noted that summer months typically present more cost-effective purchasing options from Asia. Preliminary ship-tracking data from OilX reveals that Mexico’s national oil company, Pemex, has been importing around 74,000 barrels per day of gasoline from Asia, which includes regions such as Singapore, China, and South Korea. This marks the highest import level since September 2023.
In contrast, Mexico’s gasoline imports from the United States remained stable at approximately 422,000 barrels per day. In the naphtha market, the crack margin rose nearly 10% in April, reaching $98.93 per metric ton over Brent crude. This increase was fueled by expectations of higher demand from China.
However, these gains were somewhat limited by the potential for a tariff waiver on U.S. ethane, a competing feedstock. South Korean refiners, including GS Caltex and YNCC, were reported to be seeking naphtha for early June, while Indian refiners BPCL and HPCL offered around 30,000 tons each for May. Qatar Energy also entered the market with an offer of 25,000 tons for the same month.
In recent news, China lifted a 125% tariff on ethane imports from the United States, which was imposed earlier this month. Meanwhile, SK Innovation, Korea’s largest refiner, reported an unexpected operating loss in Q1 due to declining oil prices but anticipates a rebound in refining margins in Q2. Global oil prices continued to fall, projected for their largest monthly decline in nearly three and a half years, influenced by trade tensions affecting fuel demand and increasing supply concerns.