Asia’s 10-ppm sulphur gasoil margins posted week on week losses of around 21% on the back of weaker crude oil futures and sufficient supply expectations, despite thin liquidity in the physical and swaps markets.

Demand-supply fundamentals have not changed much in the past few days, but buyers have retreated to the sidelines to wait for a clearer market direction, one trader said.

Refining margins were valued at $28.38 a barrel at the close on Friday.

Cash differentials for 10 ppm sulphur gasoil fell by 13% from the previous Friday close, with aggressive offers from one European major in the market.

Supplies remained sufficient for March-loading from northeast Asia despite scheduled maintenance, as evidenced from some emerging tenders to sell material from a few refiners.

Jet fuel refining margins fell almost at a similar pace with gasoil, as evidenced from the relatively stable regrade at a discount of 35 cents.

SINGAPORE CASH DEALS

– No gasoil or jet fuel deal.

TENDERS

– South Korea and China refiners continue their offers for prompt February and March loading parcels.

INVENTORIES

– Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area rose by 6% to their highest since July 2021, data from Dutch consultancy Insights Global showed on Thursday. Gasoil stocks reached 2.3 million tonnes, rising as importers in the region increase Russian purchases ahead of a Feb. 5 EU ban on Russian oil product imports, said Insights Global’s Lars van Wageningen.

NEWS

– Oil prices were little changed on Friday, with major benchmarks headed for their second straight week of losses, as the market awaited further signs of fuel demand recovery in China to offset looming slumps in other major economies.
Source: Reuters