Asia gasoil, jet/kerosene and gasoline cracks may stay elevated on limited exports from China

<p>Demand for transportation fuels has been picking up in Asia, as higher vaccination rates and improved mobility push regional economies to open up to near pre-pandemic levels. Global oil supplies, however, are not keeping pace with this recovering demand. China's move to inject more fuel supplies into the Asian market by way of a supplementary second round of oil products export quotas in early June is unlikely to help improve regional demand-supply balances. Moreover, China's oil product exports in 2022 are likely to fall from 2021 levels as Beijing aims to minimize outflows to meet its net-zero target.</p> <p><a title= "Asian gasoline cracks hit record high as summer driving boosts demand" href= "https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/062322-asian-gasoline-cracks-hit-record-high-as-summer-driving-boosts-demand" target="_blank" rel="noopener">Refining margins</a> for clean transportation fuels like gasoil, jet/kerosene and gasoline skyrocketed to historical highs earlier this month. Even as cracks have inched lower since, expectations are these valuations will stay elevated in the foreseeable future.</p> <p>In this podcast, S&P Global Commodity Insights' <strong>Rajesh Nair</strong>, <strong>Su Yeen Cheong</strong>, <strong>Oceana Zhou</strong> and <strong>Zhuwei Wang</strong> shed light on the current situation and discuss the scenarios that are likely to play out in the Asian clean fuels markets in the near to medium term.</p>