Page 31 - Policy Economic Report - September 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Figure 14: Refining Margins ($/bbl)

Source- Argus and OPEC

The Southeast Asian gasoline 92 crack spread against Dubai reversed direction to shed some of the gains
attained in the previous month. This was a result of challenging export opportunities as Western markets
were generally well-supplied. In addition, within the region, lower demand from China, and fewer
Japanese imports pressured the gasoline market. Towards the end of the month, Asian gasoline balances
showed a tightening tendency, with healthy demand from India and concerns over lower Chinese gasoline
supplies in the near term in line with announcements made by key Chinese refiners. China plans to
increase jet/kerosene but diminishes gasoline yields due to weak gasoline margins. Moreover, refinery
maintenance in Mexico during the month provided a transatlantic arbitrage opening providing support.
The product’s margin averaged $7.05/b in August. This was down $1.43, m-o-m, and $8.33, y-o-y.

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