Oil refiners across the globe pin hope on a recovery in gasoline demand to support their margins after some countries started to relax coronavirus lockdowns. Amid restrictions on mobility, gasoline demand fell by more than half in some regions, making it the hardest-hit fuel by the health crisis. Trading sources said a slight improvement in gasoline demand would boost overall refining margins.
Gasoline profit margins in Asia returned to positive territory on Tuesday for the first time in almost two months, driven by a pick up in demand. Margins in Europe remained negative, but market participants expect a recovery soon ahead of shutdowns of some units to deal with diesel oversupply. In the US, distillate margins fell to $10.45/barrel, the lowest since 2009.
Analysts said gasoline would see a demand recovery first after the lockdown, followed by diesel and jet fuel. Demand rose in the past couple of weeks in Britain after the government eased some restrictions and drivers returned to the road while avoiding public transport, said the Petroleum Retailers Association.
