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Gasoil margins down again on ample supply expectations

Asia’s 10-ppm sulphur gasoil margins declined for the second consecutive session to $23.70 per barrel as weak supply fundamentals persisted amid firmer oil futures.

Fundamentals were pressured by ample supplies, with at least two producers out in the market with spot cargoes for March.

China’s February exports are still estimated at around 2 million tonnes, according to several consultancies and China-based trading sources.

Temporary supply disruptions in northwest Europe for the fuel cushioned decreases.

Cash differentials also came under pressure, with numerous offers readily available in the open market for both prompt and March parcels.

Jet fuel refining margins likewise went on a downtrend, but strong demand outlooks and limited China export volumes capped weakness. As a result, regrade narrowed to a discount of 20 cents.


– One gasoil deal, no jet fuel deal


– Taiwan’s FPCC offers March-loading gasoil


– India’s Mangalore Refinery and Petrochemicals Ltd (MRPL)

MRPL will shut its Phase-3 units for planned maintenance from mid-August until the end of September, its managing director told Reuters on Tuesday. The refiner’s Phase-3 project comprises a 60,000-bpd crude unit and some secondary units.


– U.S. crude oil and gasoline stockpiles likely increased last week, while distillate inventories were seen dipping, a preliminary Reuters poll showed on Monday. Analysts estimated that stockpiles of gasoline (USOILG=ECI) rose by about 1.4 million barrels last week.


– A national strike against planned pension reforms reduced France’s power supply and disrupted petrol deliveries from French refineries on Tuesday. On the refining side, the shipping of petrol products from French sites was interrupted by the strike, TotalEnergies TTE said. The company added that there was no shortage of petrol at fuelling stations and supply levels were generally satisfactory.

– Oil prices rose for a second straight session on Tuesday, driven by optimism about recovering demand in China, and concerns over supply shortages following the shutdown of a major export terminal after an earthquake in Turkey.
Source: Reuters

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