Gasoil cash premiums in Asia Distillate, cracks hit two-month highs, and gasoil cash premiums have slumped
Asia’s cash premiums for 10ppm gasoil dropped on Monday, thanks to a weaker deal on the physical market, but traders expect the market to remain tight in the near term.
According to Singapore’s quotations, cash premiums for gasoil with 10 ppm sulphur content dipped to 73 cents per barrel, compared with 86 cents per barrel on Friday.
Over Dubai crude, the re-fining margins, also known as cracks, for 10 ppm gasoil rose to a two-month high of $14.48 a barrel in Asia trading hours, up from $14.08 per barrel on Friday.
Meanwhile, jet fuel cracks increased to $12.63 per barrel over Dubai crude on Monday, up to $11.78 per barrel at the end of last week.
On Monday, cash differentials for jet fuel went to a premium of 9 cents per barrel to Singapore quotes, compared with 2 cents per barrel on Friday.
INDONESIA COAL DISTRIBUTION
Indonesia is yet to make a decision about lifting its coal export ban as authorities discussed overcoming logistic issues that have slowed efforts to distribute coal to domestic power stations, a mining group executive reported on Sunday.
China’s major thermal coal exporter suspended coal imports on Jan. 1 after Indonesia’s state power utility reported hazardly low inventory levels of the fuel, placing Southeast Asia’s biggest economy on the brink of widespread power outages.
Indonesia’s Coordinating Ministry of Maritime and Investment Affairs has had a second meeting with miners and other federations on Sunday, but has not yet taken a decision on the return of exports, according to Hendra Sinadia, executive director of Indonesia Coal Miners Association.
DEALS OF SINGAPORE CASH
– One gasoil deal, no jet fuel trades
New Features to Be The
– Oil prices rebounded on Monday as supply issues in Kazakhstan and Libya reduced tensions because of a rapid global rise in Omicron infection, which resulted in the rise in oil prices.
Royal Dutch Shell, in part due to Omicron’s economic recovery, is expected to pursue a $7 billion share buyback “at pace,” which will be the result of liquefied natural gas outages and slow fuel sales.