SINGAPORE: Asia’s gasoline refining profit margin inched higher on Wednesday, supported by a decline in Singapore and US inventories and strong demand due to the start of the peak summer driving season in the United States and Europe.

The crack rose to $30.61 a barrel from $29.61 in the previous session.

Asia’s naphtha crack edged up to minus $35.35 per tonne from minus $38.03 in the previous session.

“The market continues to be weak as most crackers are still operating at reduced run rates this month (a few have also shut for turnarounds) to cope with the negative downstream margins,” said Krystal Chung, senior analyst of Refinitiv Oil Research team.

Singapore’s inventories of light distillates fell by 201,000 barrels to a two-week low of 15.26 million barrels in the week to June 1, data from Enterprise Singapore showed.

US gasoline inventories fell by 256,000 barrels last week, market sources told Reuters.

Oil prices fell on Thursday on speculation that Saudi Arabia and other OPEC members may boost crude output to compensate for a drop in Russian production.