Oversupply caps distillate gains

摘要

Product prices rose with firmer crude, but plentiful supplies capped middle distillate gains. Limited exports from India and the Mideast Gulf buoyed naphtha and fuel oil, but the restart of a refinery in Taiwan could pare strong regional refining margins for gasoline. Gasoline crack spreads widened after 22,000 b/d was booked for delivery to Pakistan in September-November. But Taiwan's Formosa Petrochemical has restarted one of three 180,000 b/d crude distillation units at its fire-hit 540,000 b/d Mailiao refinery, and the other units are likely to resume soon. The refiner had suspended all product exports for August after the fire on 30 July, and a resumption in gasoline exports should ease supply concerns.