Asia’s 10-ppm sulphur gasoil margins slipped to the week’s lowest despite thin spot trading liquidity, amid sufficient supply expectations in the region and volatile oil futures.

The downtrend was exacerbated by overnight weakness in northwest Europe cracks.

Refining margins for 10 ppm sulphur gasoil closed the session at $27.68 a barrel, close to hitting a five-month low.

Cash differentials for 10 ppm sulphur gasoil weakened to $2.78 per barrel, amid a buy-sell gap with a key oil major offering

Meanwhile, jet fuel refining margins slipped at a slower pace to $27.32 a barrel, narrowing the regrade to a discount of 36 cents a barrel.

The physical price spread between jet fuel and 10 ppm sulphur gasoil however turned positive, highlighting continuous strength in jet fuel fundamentals.

SINGAPORE CASH DEALS

– No gasoil or jet fuel deal.

INVENTORIES

– U.S. crude oil and fuel inventories rose last week to their highest levels since June 2021, the Energy Information Administration said on Wednesday, as demand remained weak. Distillate stockpiles (USOILD=ECI), which include diesel and heating oil, rose by 2.3 million barrels in the week to 117.6 million barrels, versus expectations for a drop of 1.3 million barrels, the EIA data showed.

– Singapore middle distillates stocks held by up to 14 major oil and oil storage companies, as of Feb. 1, climbed to highest since November 2021, according to data released on Thursday by Enterprise Singapore.

NEWS

– Oil prices rebounded on Thursday after tumbling in the previous session as a weaker dollar brought back some appetite for risk assets and the OPEC+ decision to roll over an output cut helped ease oversupply concerns.
Source: Reuters