July 25 Reuters A sudden crash in global gasoline prices in the past two weeks has dented refiners39; profits, pushing up inventories in key trading hubs around the world while looming exports from China and India also add to pressure on growing stockpiles.

Refiners will be forced to cut gasoline output to safeguard themselves against losses and switch to producing more profitable fuels, traders say, but summer demand is also being hurt by high pump prices in the United States and Europe, and by instability and easing seasonal demand in some parts of Asia.

This has led to a rise in inventories from Singapore to AmsterdamRotterdamAntwerp and the United States, according to traders, analysts and inventory data.

Asia39;s top fuel exporter Taiwan39;s Formosa Petrochemical Corp could reduce operating rates at their residue fluid catalytic cracking RFCC units, which are now running at full capacity, by 5 in the coming weeks.

We will sell more VLSFO very low sulphur fuel oil because their margins are better, Formosa39;s spokesperson K.Y. Lin told Reuters. VLSFO can be used as a feedstock for RFCC units to produce gasoline or sold as marine fuel.

Asian gasoline margins have plunged more than 102 in July to a discount of 14 cents a barrel to Brent crude after hitting a record at a premium of 38.05 a barrel in June, Refinitiv data showed. They are also at the lowest for this time of the year since at least 2000.

That has depressed Asian refining margins to 88 cents a barrel…