It may be stretching the bow too far to blame Donald Trump for the collapse in the profits Asian refiners get for making gasoline, or indeed for the surge in diesel profits, but the policies of the U.S. president are certainly playing a role.
The profit margin on producing 92-octane gasoline at a typical Singapore refinery dropped to $2.37 per barrel of Brent crude on Oct. 26, the lowest in 27 months, according to Refinitiv data.
At the same time, the profit, or crack, for making a barrel of gasoil with 10 parts per million of sulphur – the base for diesel and jet fuel – reached $18.53 above the price of a barrel of Dubai crude on Oct. 26, the strongest since February 2015.
This means that Asian refiners are making large profits from producing diesel and jet fuel, but barely scraping by on gasoline. Read More