Record oil prices to hurt Asian Q4 gasoline demand

Record oil prices are set to hurt Asian gasoline demand in the fourth quarter, as major importing nations will come under pressure to conserve fuel or roll back retail subsidies that prop up demand.

Benchmark Asian gasoline prices at around $79.60 a barrel are still $15 away from a record hit in September 2005, but analysts expect market prices for the motor fuel to climb following crude’s record over $80 this week.
Industry sources said on Thursday they expect Asia’s top gasoline importers Indonesia and Vietnam, which are scheduled to announce their import programme for the next month or quarter within the next two weeks, to request smaller volumes.

“I think the governments that subsidise gasoline will take some kind of action, if oil prices stay at this level,” said Tony Regan, Singapore-based consultant at Nexant, referring to Indonesia and Vietnam.

Reuters