Jannah Theme License is not validated, Go to the theme options page to validate the license, You need a single license for each domain name.

Asia surges gasoline exports to the U.S. at ultra-high prices

Article content

(Bloomberg) — The deterioration of gasoline crunches seems to boost refiners in Asia, especially those in India. This is because the high prices in the United States are driving the increase in exports.

As the summer driving season approached, US pump prices exceeded $ 4 per gallon for the first time in all states. JPMorgan Chase & Co. Predicts this week that US gasoline could skyrocket to $ 6.20 per gallon by August. This will be more than double the price a year ago.

Motor fuels have been taken over from diesel as the main focus of fuel supply concerns. The tight market is expanding the global refining system that has been closed by Covid-19 over the past few years. In Asia, the gasoline margin has doubled since the end of March to more than $ 33 a barrel, surpassing the diesel margin eased from its peak in early May.

Advertising 2

Article content

“The tightness of the Atlantic Basin, especially the United States, should continue to see Asian petrol barrels pulled west,” said FGE analyst Dylan Sim. “This is primarily from India, and some major refineries in the country postpone planned maintenance from August to September.”

Industry consultants said the gas shortage in Asia will shrink from an estimated 260,000 barrels in June to 110,000 barrels in the three months from September as the plant recovers from maintenance and the Malaysian PRefChem facility goes up. This should provide more scope for local processors to increase their exports.

See: Gasoline metrics flash red in the tight and costly US summer

Advertising 3

Article content

Shipments in India may come from private refiners such as Reliance Industries and Nayala Energy, as state-owned processors are obliged to meet domestic demand. Nationwide gasoline exports jumped to a record high of 1.6 million tonnes in five years in March, the latest data show. With domestic prices unchanged since early April, refiners are sending as much fuel as possible abroad.

A potential factor limiting the amount of gasoline that Asia can send to the United States is a recovery in demand in China or an accelerated consumption in other regions. Crude oil processing in Asia’s largest economy fell to its lowest level in more than two years last month, but could recover soon if China can put off the worst wave of current virus outbreaks.

Wood Mackenzie analyst Max van der Belden said China has not yet recovered from the impact of Covid-19 on oil demand, but fuel consumption in South and Southeast Asia will increase as regulations are relaxed. He said he was recovering significantly.

© 2022 Bloomberg LP



Comment Comment

Postmedia promises to maintain a forum for lively yet civil discussions and encourages all readers to share their views on our articles. Moderation can take up to an hour for comments to appear on your site. Comments are relevant and should be stored with respect. You have enabled email notifications. You will now receive an email when you receive a reply to a comment, when the comment thread you are following is updated, or when a user follows a comment. For more information and details on how to adjust your email settings, see Community Guidelines.

Asia surges gasoline exports to the U.S. at ultra-high prices

Source link Asia surges gasoline exports to the U.S. at ultra-high prices

Related Articles

Back to top button