Margins steady as prices fall

摘要

Product prices fell amid concerns about waning demand but refining margins were stable to firmer. Supply tightness lifted fuel oil refining margins. Falls on middle distillates markets were limited by rising seasonal consumption. Asian importers bought gasoline to cover refinery shutdowns. The fuel oil discount to Dubai crude narrowed on supply tightness (see graph). Singapore's imports of Iranian fuel oil are expected to remain low in September, at little more than 100,000 b/d, similar to August but less than half of June and July shipments. Singapore is expected to import 560,000 b/d of fuel oil from west of Suez in September, below typical levels of about 650,000 b/d.