Asia Gasoline Profits Jump 150%

Profits from gasoline production have surged over 150% in Asia from June due to output cuts and refinery maintenance, industry sources said this week, but that may not last as a flood of new supply is expected to hit markets. 
Asian profits on refining Brent crude into gasoline crack touched a nine-week high of $6.68 a barrel on Monday, up from an average of below $3 in June, Reuters reported. 
That comes as Formosa Petrochemical Corporation, one of Asia’s 10 largest refineries, trims its gasoline output in July. 
Elsewhere, China’s Shandong Dongming Petrochemical Group will this week shut the biggest independent refinery in the Chinese province of Shandong for two months, two sources have said. 
China’s Sinopec is planning to curb runs at two of its coastal refineries, plant sources have said. 
In India, gasoline and alkylate exports for June were less than hal the volumes seen in May in the wake of refinery maintenance, according to a monthly report of Refinitiv Oil Research. 
Those supply reductions coincide with the permanent closure of US Philadelphia Energy Solutions’ Refinery, although Formosa Spokesman KY Lin said the shutdown had more impact in European markets than in Asia. 
Lin added that Formosa would keep its refinery throughput in July at 90% of capacity amid uncertainty over market fundamentals. 
The industry sources said China was set to boost its fuel exports as Hengli Petrochemical’s 400,000 barrels per day refinery reached full capacity in May, while Zhejiang Petrochemical Corp’s similar-sized refinery had started trial runs around the same time.