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Asia Distillates-Cracks swing back up 9%, some Nov discussions emerge

Asia’s 10-ppm sulphur gasoil margins swung back up by almost 9% to around $27.50 a barrel as buyers returned to the spot market after Tuesday’s weakness and more regional discussions for November cargoes started.

At least 1-2 spot November-loading cargoes from South Korean refiners were under discussion, one source said, though exact details could not be confirmed.

Bearish expectations from a handful of trade sources who believed the market to be amply supplied limited gains overall.

Spot premiums climbed by 12 cents day-on-day, reflecting stronger prompt October swap prices, despite a lack of deals and a persistent buy-sell gap in the open trading market.

Jet fuel refining margins tracked gains in gasoil cracks amid a lack of thin spot market activity.

Regrade kept almost steady day-on-day at a discount of around $2.25 a barrel.

SINGAPORE CASH DEALS

– No deals for gasoil or jet fuel

REFINERY NEWS REF/OUT

– Vietnam’s largest refinery Nghi Son completed major maintenance at the facility on Wednesday, one week ahead of schedule, the company said.

– Germany’s 318,400 barrel-per-day (bpd) Miro refinery in Karlsruhe will start six weeks of maintenance work on Thursday, the company said.

INVENTORIES

– Middle distillates stocks held at Fujairah Oil Industry Zone gained to almost 2.5 million barrels for the week ended Oct. 9, according to industry information service S&P Global Commodity Insights.

NEWS

– Ultra low-sulphur diesel (ULSD) loadings from the Russian Baltic Sea port of Primorsk are set to rise in October to 0.7 million metric tonnes from 0.21 million metric tons in the previous plan, two traders said on Tuesday.

– Oil edged higher on Wednesday as investors grappled with the prospect of supply disruptions due to the Middle East turmoil.

– A subsidiary of Hengli Petrochemical 600346.SS, China’s privately controlled refiner and petrochemical producer, has won a license to supply bonded marine fuel in Zhoushan, the country’s bunker hub, a company spokesperson said on Wednesday.

– China has reaped savings this year of nearly $10 billion through record purchases of oil from countries under Western sanctions, according to Reuters’ calculations based on data from traders and shiptrackers.

– Low water levels after dry weather have stopped cargo vessels from sailing fully loaded on the Rhine river in Germany, with surcharges added to the usual freight rates, shipping experts said on Wednesday.
Source: Reuters (Reporting by Trixie Yap; Editing by Devika Syamnath)

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