Asian gasoline cracks weaken to more-than-three-month low due to higher Chinese exports

The Asian gasoline crack touched a more-than-three-month low at the July 21 Asian close as Chinese July exports are expected to be higher month over month, sources said.

Platts, part of S&P Global Energy, assessed the front-month FOB Singapore 92 RON gasoline swaps crack against Brent swaps down 27 cents/b day over day at a more-than-three-month low of $8.06/b at the Asia close July 21. The crack was last weaker at $7.93/b April 14, Platts data showed.

China was expected to export 800,000-900,000 mt of gasoline in July, up from about 610,000 mt in June, sources said.

Moving into August, however, Chinese exports were expected to dip to between 700,000 mt and 800,000 mt, sources said.

"China may start building inventory in August as Oct. 1 is a national holiday," a trader said.

Possibly reflecting low regional demand, Lanka IOC canceled a buy tender for 20,000 mt of 92 RON gasoline and 3,000 mt of 95 RON gasoline for Sept. 13-14 delivery, which had closed July 21, sources said.

Lanka IOC also canceled a buy tender for 11,000 mt of Euro 3 gasoline for Sept. 8-9 delivery that was due to close July 21, sources said.