Asian gasoline cracks are likely to stay supported at or above current levels amid steady demand and tight supply with at least a couple of refiners planning turnarounds in the period. The December 2015 crack averaged $13.59/b, compared with just $5.88/b a year ago, Platts data showed. It stood at $15.59/b on January 8. Taiwan’s Formosa Petrochemical Corp. will shut a 180,000 b/d crude distillation unit and an 84,000 b/d residue catalytic cracker in March for a turnaround of nearly 45 days, cutting gasoline exports by half. India’s Reliance Industries Ltd. will also commence maintenance at its CDU and RFCC units from March. Refinery turnarounds in the US starting in late Q1 could also give Asian values a lift. Meanwhile, Indonesia is expected to keep imports steady or slightly higher after the government recently scrapped plans to impose a levy on gasoline consumption and further cut retail prices. All eyes are on China’s exports in Q1 after Beijing sharply raised oil product export quotas for state-owned refiners and for the first time granted quotas to independent refineries.
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