The Future of Asian Refiners

Asian benchmark gasoline, gas oil, jet fuel crack spreads against the Dubai swaps are all hovering and multi-month lows this month. This means for those highly export oriented refiners that enjoy lucrative export margins last year, now they are rapidly tweaking their domestic and export supply ratio at the moment. But one thing is that focusing on domestic sales rather than exports would be more profitable or anything. And of course it all depends as Oshana said earlier that China's domestic supply demand balance and the export quotas will be the game changers so given how unpredictable the Chinese monthly oil export volumes could be.