The benchmark Singapore 92 RON gasoline price fell below $100/barrel on Friday for the first time since mid-2012 to $98.58/b, tracking the crude oil market.
Platts assessment of cash 92 RON gasoline, fell by $4.08/b from Thursday. The last time the assessment was below $100/b was on June 29, 2012, when it was $97.80/b.
Some market participants said the fall in prices could spark gasoline demand in the region.
"I would think regional demand would increase, probably from Vietnam," a Singapore based trader said.
Prices of FOB Singapore RON 95 fell by $4.08 from Thursday to $101.74/b, while the FOB Singapore RON 97 gasoline stood at $102.62/b, down $4.08.
Cash Brent prices at the close of Asian trade, fell by $2.69 from the previous close to $88.85/b. Cash Brent prices at the close of Asian trade Thursday have fallen by around 24% from $116.19/b on June 23.
Much of the fall in crude prices has been caused by high crude production globally. Higher crude production in the US, Libya and Russia has continued to put push prices down, while OPEC continues to pump out more than 30 million b/d .
The higher production is coming at a time when the economic climate is not conducive to demand.
The International Energy Agency last month cut its forecasts for global oil demand growth for this year and next, citing a weak outlook in both China and Europe.
The IEA's latest monthly oil market report cut its demand growth forecast for 2014 by 150,000 b/d to 900,000 b/d and its estimate for 2015 by 165,000 b/d to 1.2 million b/d compared with the previous month's report.
