Asia Distillates-Gasoil cracks slip 10% amid thin trade, cautious Oct outlook
Asia’s 10 ppm sulphur gasoil margins slipped by at least 10% at the start of the week on the back of thin market activity and cautious October outlook, against a backdrop of firmer crude futures and softer ICE gasoil futures.
Refining margins fell to slightly below $30 a barrel, reflecting the roll over in months from September to October amid the steeper backwardated market structure.
A portion of the market remained cautious on October stockpiles, with at least two Chinese refiners in the spot market starting their discussions, weighing on prices overall.
Cash differentials slipped as well, down by 3 cents from the previous trading session, as ready sellers for both prompt and October material were prevalent.
Jet fuel refining margins fell at a quicker pace, with regrade widening to a discount of $2.40 a barrel given the roll over of months to October
SINGAPORE CASH DEALS
– One gasoil deal, no jet fuel deal.
REFINERY NEWS REF/OUT
– Marathon Petroleum MPC.N restarted two key hydrotreaters on Friday at its 593,000 barrel-per-day (bpd) Galveston Bay refinery in Texas City, Texas, one day after a power interruption, people familiar with plant operations said.
– Oil prices rose for a third straight session on Monday, buoyed by forecasts of a widening supply deficit in the fourth quarter after Saudi Arabia and Russia extended cuts and by optimism about a recovery in demand in China.
– China’s diesel exports in August surged from a year earlier and have nearly tripled so far in 2023 compared to the same time a year ago, data showed on Monday, as refiners take advantage of strong regional refining margins to ship fuel overseas.
– Рrices for Russia’s Far East ESPO Blend crude oil loading from the port of Kozmino in October have firmed to a premium of more than 50 cents against ICE Brent on a delivery basis in Chinese ports, several traders familiar with the matter said.
Source: Reuters (Reporting by Trixie Yap; Editing by Shailesh Kuber)