Singapore gasoline crack spreads now among the world’s lowest (8/14/2019)

Asian refinery capacity expansions and increased throughput are affecting regional gasoline supply and crack spreads. Before 2015, gasoline crack spreads in Asia were frequently some of the world’s highest, reflecting low refinery capacity and high petroleum demand growth. However, since 2016, Asian gasoline crack spreads have fallen regularly to among the lowest globally. In China specifically, refinery investments and expansions have contributed to increasing gasoline yields and higher gasoline exports, up to 0.3 million barrels per day (b/d) in 2019 through June. These factors are contributing to downward pressure on gasoline prices and crack spreads in Singapore, the local market hub for petroleum products. In addition to ongoing Chinese refinery capacity expansions, increased petroleum product export quotas and slower transportation fuel demand growth within China are likely to result in continued increases in gasoline exports from China. ... More »