Page 31 - Policy Economic Report_Jan 25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Figure 16: Refining Margins ($/bbl)

Source- Argus and OPEC
The Southeast Asia gasoline 92 crack spread against Dubai rose to a five-month high and benefitted from
the policy changes in China that led to lower gasoline exports to Singapore, following the implementation
of the export tax rebate cuts in early December. According to Argus, gasoline exports from China declined
50% in December. Moreover, firm gasoline demand from Indonesia provided further support. Going
forward, seasonality, softening East-West flow incentives and solid upside potential for gasoline refinery
output are all expected to put pressure on Asian gasoline markets. Any potential Asian gasoline market
support, for the time being, will have to emerge from within the region, assuming all other factors remain
unchanged. The product’s margin averaged $8.28/b in December, up $1.98, m-o-m, but down $1.68, y-o-
y.
Figure 17: Singapore crack Spreads vs. Dubai ($/bbl)

Source- Argus and OPEC Page | 30

January 2025