• Gas Oil Spread - Higher: Gas Oil - Dubai spread in 2022 was USD 34.3 per barrel increasing by 412% from USD 6.7 per barrel in 2021 due to the Russia-Ukraine conflict leading to an energy shortage crisis in Europe, the world’s largest net Diesel importer. Diesel spread was all-time high at USD 55.2 per barrel in June. Gas Oil - Dubai spread in 4Q22 was USD 39.3 per barrel rising by 12% from USD 35.2 per barrel in 3Q22 thanks to seasonally higher Diesel demand. Still, some Diesel demand was impeded by China’s export quota issuance in late September as well as warmer-than-typical winter climate during October and November. • Fuel Oil Spread - Lower: High Sulphur Fuel Oil (HSFO) - Dubai spread in 2022 was USD -14.1 per barrel declining by 188% from USD -4.9 per barrel in 2021 owing to the U.S.’ sanction on Russia. Plus, HSFO supply increased following higher Refinery utilization rates aligning with rising Diesel spread. HSFO - Dubai spread in 4Q22 was USD -22.5 per barrel being approximate to that in 3Q22. There were more Russian HSFO inflows to Asia due to the U.S.’ sanction on Russia. Nevertheless, HSFO demand for marine transportation was stagnant because of high freights; besides, softened Gasoline spread limited HSFO demand for converting to Gasoline. The spread between Lube Base Oil products and Fuel Oil • 500SN Spread - Lower: 500SN - Fuel Oil spread in 2022 was USD 678 per ton reducing by 20% from USD 845 per ton in 2021 owing to sluggish Lube Base Oil price while Fuel Oil price had small improvement. Overall, Lube Base Oil demand in 2022 was stagnant. 500SN - Fuel Oil spread in 4Q22 was USD 780 per ton being down by 2% from USD 798 per ton in 3Q22 as Lube Base Oil demand was weak even if there were several maintenance shutdowns in 4Q22, thus approximate spread. • Asphalt Spread - Higher: Asphalt - Fuel Oil spread in 2022 was USD 16 per ton increasing by 245% from USD -11 per ton in 2021 as price movement of Asphalt was noticed slower than that of Fuel Oil. Still, Asphalt demand was sluggish at a low level, partially owing to budget allocation focusing more on solving economic issues, thus lower budget for infrastructure improvement. China’s Zero-COVID policy curbed some Asphalt demand as well. Asphalt - Fuel Oil spread in 4Q22 was USD 146 per ton increasing by 55% from USD 94 per ton in 3Q22 as Fuel Oil price slumped fast aligning with crude oil price, while Asphalt price dropped at a slower pace. Asphalt demand in many parts across Asia was dampened by monsoons and floods. 56-1 One Report 2022 176 IRPC PUBLIC COMPANY LIMITED
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