Gasoline prices spark political reactions across continents

Crude prices continued to rally, at 85.7 $/b at the prompt for ICE Brent Dec-21 contract, as Asian nations multiplied calls to oil producers to boost production, as gasoline pump prices soared in the East. Indeed, The Japanese prime minister urged oil producers globally to ramp up production over the weekend, as gasoline prices in Japan hit a 7 year high. The rise in refined product prices in the East has mostly to do with low refining runs in the region, as China runs were recorded at 13.7 mb/d in September, a 17 month low. Indeed, low import quotas for independents and constrained refined product exports have dented independent refiners’ throughputs. The trend seems unlikely to revert, as the last batch of import quotas released gives a limited Q4 volume to independent refiners. Gasoline and diesel cracks in Asia both rallied substantially last week, amid growing demand in re-opening economies in Indonesia, Vietnam and Malaysia. Firm diesel exports to the west also continue to support the fuel in the region. Total’s refinery in Antwerp has been the first player to announce the closure of its 40 kb/d hydrocracker unit due to high natural gas costs, further reducing the diesel and jet supply in Europe, which is a strong footing for diesel cracks to rally higher, amid continued high natural gas prices.  

Share this news :

You might also read :

ES-economy
January 18, 2022

Bond yields continue to rise

Soaring oil prices are (rightly) fuelling inflationary fears. Inflation forecasts have been revised upwards significantly, as shown by the latest survey conducted by Bloomberg: +0.3%…
ES-economy
November 16, 2021

Sharp fall in the euro

The EUR/USD exchange rate plunged yesterday after Christine Lagarde reaffirmed her belief that inflation would quickly fall below 2% and that an ECB rate hike was highly unlikely by…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet? 

[booked-calendar]