Gasoil margins drop 15% week-on-week on poor fundamentals
Asia’s 10-ppm sulphur gasoil margins slipped by around 15% week-on-week as market fundamentals remained poor and led to strong selling interest through the week.
Spot tenders were readily available from at least four northeast Asian producers, with more selling activities from Chinese majors likely a week later as well.
Refining margins for 10 ppm sulphur gasoil closed the week’s session at $23.50 per barrel.
Cash differentials for 10 ppm sulphur gasoil fell to $1.17 a barrel.
Jet fuel refining margins fell at a quicker pace, following talks of ready March supply from at least two Korean refiners.
As a result, regrade fell by more than five times to a discount of $1.28 per barrel.
SINGAPORE CASH DEALS
No gasoil or jet fuel deal.
Malaysia’s Petron seeks prompt February gasoil
Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area rose by over 7% to their highest since early March 2021, data from Dutch consultancy Insights Global showed on Thursday. Gasoil stocks reached 2.5 million tonnes, rising as importers in the region increased Russian purchases before an EU ban on Russian oil product imports came into force on Feb. 5, said Insights Global’s Lars van Wageningen.
Oil prices jumped more than 2% on Friday, heading for weekly gains, as Russia announced plans to reduce production next month after the West imposed price caps on the country’s oil and oil products.