Asia Distillates-Gasoil refining margins gain on tighter supplies
Asian refining margins for 10 ppm gasoil rose for a second consecutive session on Friday as seasonal refinery turnarounds have tightened supplies, although regional demand continues to remain lacklustre due to COVID-19 restrictions.
Refining margins, also known as cracks, for 10 ppm gasoil rose to $8.70 per barrel over Dubai crude during
Asian trading hours, compared with $8.60 per barrel a day earlier.
Cracks for the benchmark gasoil grade in Singapore have gained about 26% in the last couple of months, Refinitiv Eikon data showed.
Despite limited arbitrage opportunities, the gasoil market would likely hold steady in the short term as export volumes from India as well as China are expected to remain low until refineries start ramping up rates, trade sources said.
Middle distillate inventories in Singapore have slumped to their lowest level in more than 16 months this week, Enterprise
Singapore data showed on Thursday.
Cash discounts for gasoil with 10 ppm sulphur content GO10-SIN-DIF widened by a cent to 11 cents per barrel to Singapore quotes on Friday.
CHINA’S TEAPOTS SNAP UP FUEL OIL
China’s independent refineries are snapping up fuel oil, resuming imports after a nearly five-year hiatus, as Beijing’s crackdown on crude oil quota trading along with new fuel taxes limit refinery feedstock options.
Five companies, including four refineries based in Shandong province and one local trader, booked 5.2 million barrels of fuel oil from Russia and the Middle East in recent few weeks for deliveries from late June through July, four traders and two refinery officials familiar with the transactions told Reuters.
Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub STK-GO-ARA dropped 7.4% to 2.1 million tonnes in the week ended June 10, data from Dutch consultancy Insights Global showed.
ARA jet fuel inventories STK-JET-ARA dipped 2.1% this week to 1.1 million tonnes.
SINGAPORE CASH DEALS
No gasoil trades, no jet fuel deals
Oil prices rose on Friday to fresh multi-year highs and were set for their third weekly jump on expectations of a recovery in fuel demand in Europe, China and the United States as rising vaccination rates lead to an easing of pandemic curbs.
ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 76.36 0.66 0.87 75.7GO 0.5 Diff -2.36 0.09 -3.67 -2.45 Spot Gas Oil 0.25% 76.46 0.66 0.87 75.8 GO 0.25 Diff -2.26 0.09 -3.83 -2.35 Spot Gas Oil 0.05% 76.64 0.68 0.90 75.96 GO 0.05 Diff -2.08 0.11 -5.02 -2.19 Spot Gas Oil 0.001% 78.61 0.56 0.72 78.05 GO 0.001 Diff -0.11 -0.01 10.00 -0.1 Spot Jet/Kero 75.91 0.5 0.66 75.41 Jet/Kero Diff -0.35 0.06 -14.63 -0.41 Brent M1 Gasoil M1 Gasoil M1/M2 Gasoil M2 Regrade M1 Regrade M2 Jet M1 Jet M1/M2 Jet M2 Gasoil 500ppm-Dubai Cracks M1 Gasoil 500ppm-Dubai Cracks M2 Jet Cracks M1 Jet Cracks M2 East-West M1 East-West M2 LGO M1 LGO M1/M2 LGO M2 Crack LGO-Brent M1 Crack LGO-Brent M2
Source: Reuters (Reporting by Koustav Samanta)