Asian oil refiners lose money as margins turn negative; worst in 7 years

Gas flares burn from pipes aboard an offshore oil platform in the Persian Gulf’s Salman Oil Field, operated by the National Iranian Offshore Oil Co, near Lavan island, Iran. (Bloomberg pic)

SINGAPORE: Asian refiners are now losing money producing gasoline, a market benchmark showed on Wednesday, with margins sliding to their worst level in seven years as rising exports from China spill into an already oversupplied market.

The benchmark Singapore margins for RON92 gasoline against Brent crude oil hit minus US$1.44 (RM6) a barrel on Tuesday, the weakest level since Nov 2011.

“Fears of further exports of the motor fuel from China and South Korea added to an already oversupplied market,” said Sukrit Vijayakar, director of energy consultancy Trifecta.