Asia’s gasoline margins have recently swung back to a premium after mainly being at discounts since the start of 2019 as rising demand from Indonesia and upcoming refinery maintenance raised supply concerns.
The so-called gasoline crack spread, or the price difference for the fuel versus Brent crude oil, rose to nearly $1 a barrel on Tuesday, according to data on Refinitiv Eikon. The spread has rebounded from minus $2.85 on January 30, the lowest since November 2011.
The spread typically trades at a premium to Brent but fell to a discount to the benchmark crude at the end of 2018 because of a supply glut of gasoline in Asia. Read More