Asia’s 10-ppm sulphur gasoil trading liquidity picked up after a myriad of sellers emerged to offload end-March and April parcels, as evidenced from the number of deals.
Trading sentiment turned cautious following overnight poor performance in the upstream oil futures sector, with bids continuously being booked throughout the afternoon trading session.
Some participants were still cautious about April export estimates from China, saying it could change the market’s balance slightly amid demand expectations ahead of the summer.
Refining margins for 10 ppm sulphur gasoil fell to $22.37 a barrel, erasing early week gains.
Cash differentials fell to 70 cents per barrel.
Jet fuel refining margins likewise fell and at a faster pace to $19.35 per barrel, widening the forward month regrade to a discount of around $3 per barrel.
SINGAPORE CASH DEALS
– Three gasoil deals, no jet fuel deals
INVENTORIES
– U.S. crude oil stockpiles rose last week even as oil refineries ramped up utilization following a strong maintenance season, while gasoline and distillate inventories fell, the Energy Information Administration said on Wednesday. Distillate stockpiles, which include diesel and heating oil, fell by 2.5 million barrels in the week to 119.7 million barrels, versus expectations for a 1.2 million-barrel drop, the EIA data showed. Despite the draw, Midwest distillate inventories rose to their highest since March 2022.
– Inventories of middle distillates in key trading hub Singapore spiked to the highest level since November 2021 on the back of declining net export volumes for gasoil, official data from Enterprise Singapore showed on Thursday.
NEWS
– Marine fuel sales at the world’s third-largest bunkering hub of Fujairah in the United Arab Emirates fell to record lows in February, based on the latest Fujairah Oil Industry Zone data, which started being published in 2021.
– Credit Suisse CSGN on Thursday said it would borrow up to $54 billion from the Swiss central bank to shore up its liquidity and investor confidence after a slump in its shares intensified fears about a global financial crisis.
– Some 43% of operational staff at TotalEnergies’ TTE French refineries and depots were on strike Thursday morning as a walkout over the government’s planned changes to its pension system continued for a ninth day, a company spokesperson said.
– Deliveries remain blocked from the Fos refinery in southern France operated by Exxon Mobil XOM subsidiary Esso for the ninth day due to the strike over the government’s planned pension reform, a union representative told Reuters.
– U.S. crude exports to China in March are headed for their highest in nearly two-and-a-half-years, spurred by a recovery in demand and competitive prices compared with Middle East supplies.
– Oil prices clawed back some ground on Thursday after sliding to 15-month lows in the previous session as markets calmed somewhat after Credit Suisse was thrown a financial lifeline by Swiss regulators.
Source: Reuters