NEW DELHI: Asia’s gasoline markets weakened by nearly 41% in April amid concerns over high supplies from China contributing to losses in overall refining margins in the region.

The crack ended 11 cents down on the last trading day of the month at $9.11 a barrel. The naphtha margin also declined by about $7 to $49.08 a tonne over Brent crude, posting a monthly loss of about 24%.

However, gasoline markets could recover next month as the United States heads into summer driving demand season.

Also, China’s refining giant Sinopec Corp sees the country’s diesel and gasoline demand growing more in the second quarter than in the first three months of 2023, a trend set to bolster the firm’s profitability further this year.

Meanwhile, lower refining margins globally have ignited speculation around refinery run cuts, although it seems unlikely at the current levels, analysts and traders said.

“The total volume of crude processed rarely shifts on a global basis unless margins are outright loss-making,” consultancy Energy Aspects said in a note.

Singapore markets closed early on Friday due to a public holiday.

Oil prices posted mild gains on Friday, but headed for a second week of declines as disappointing US economic data and uncertainty over further interest rate hikes weighed on the demand outlook.

Iran seized a Marshall Islands-flagged oil tanker in the Gulf of Oman in international waters on Thursday, the US Navy said, the latest in a series of seizures or attacks on commercial vessels in sensitive Gulf waters since 2019.