Asia’s petrol margin fell to more than a two-year low late last week due to ample supplies, and the October average is now expected to be the worst for the month since 2013, based on Thomson Reuters data.
Petrol margins against Brent crude fell 63 percent from the start of the month to $3.04 a barrel on Thursday, the lowest since Aug. 1, 2016, before recovering to $3.55 a barrel on Friday.
However, Friday’s bounce was merely a reflection of easing oil prices, rather than a sign of better things to come, trade and industry sources said.
“Weaker demand in Europe and the US have affected the Asian market,” said KY Lin, spokesman for Formosa Petrochemical Corp, one of Asia’s key exporters of light and middle distillates. Read More