Light Distillate Too Heavy for Singapore Margins

Singapore refining margins were extraordinarily weak early in 2019, dragged down by poor naphtha and gasoline cracks. There will be only a moderate recovery of light distillate in 2019. Consequently, toward the end of 2019 when middle distillate strengthens, benchmark Singapore refining margins will only return to “ordinary” levels. This will prevent runaway throughput growth in Asia.