<article><p class="lead">The Asian gasoline margin, or the premium of the <i>Argus</i> Singapore 92R gasoline price to Ice Brent crude, fell below $3/bl for the first time since late December.</p><p>An unexpected surge in gasoline stocks in the US has depressed the prompt-month RBOB Nymex futures margin and in turn pressured Singapore gasoline prices, said traders. The Asian gasoline margin was last lower at $2.50/bl on 29 December.</p><p><a href="https://direct.argusmedia.com/newsandanalysis/article/2185678">EIA data</a> yesterday show gasoline stocks rising by 4.259mn bl from a week earlier to 256.412mn bl for the week ending 5 February, despite forecasts of a 1.814mn bl build.</p><p>The prompt-month RBOB Nymex margin responded by falling sharply from $12.37/bl on 8 February to $10.76/bl yesterday, according to <i>Argus</i> data. RBOB Nymex values are typically used as a proxy to the Singapore 92R grade's strength, said traders. </p><p>Unrest in Myanmar (Burma), high inventories in Vietnam and muted lunar new year travel activity because of the Covid-19 outbreak have also placed a cap on regional demand, said traders. Trading firms are "recycling" cargoes by reselling cargoes they have previously at much lower prices, depressing the market, said market participants.</p><p>Higher Singapore light distillate inventories have also contributed to the weaker prices. But fundamentals are still providing some support with the market anticipating reduced supplies from a <a href="https://direct.argusmedia.com/newsandanalysis/article/2183348">heavy turnaround season</a>, affecting key gasoline suppliers in northeast Asia during March-April.</p><p class="bylines">By Aldric Chew</p></article>
