Asia’s middle distillates markets turned slightly more upbeat, with trading sentiment firming slightly amid falling stockpiles in Singapore and as more physical window spot discussions emerge.
Talks of some August spot cargoes from northeast Asian refiners being done at discounts of 60-80 cents per barrel surfaced, though further details could not be confirmed.
More China-origin jet fuel offers also emerged in the spot market.
The east-west price spreads narrowed slightly from the previous trading session, with Asian markets strengthening slightly given a lack of swing supplies within this region in the near-term.
Refining margins (GO10SGCKMc1) held steady at $21 a barrel at Asian market close.
On the trading window, deals for higher-sulphur gasoil cargoes resurfaced, but discussions for 10ppm sulphur gasoil remained muted. Cash differentials (GO10-SIN-DIF) edged up to $1.66 a barrel, reflecting the steeper paper market backwardation.
Regrade (JETREG10SGMc1) widened slightly to discounts of around $2.4 a barrel.
SINGAPORE CASH DEALS
– Two gasoil deals, no jet fuel deals.
INVENTORIES
– U.S. crude oil and gasoline inventories fell last week, buoyed by stronger demand and exports, while distillate stockpiles rose, the U.S. Energy Information Administration (EIA) said on Wednesday.
– Singapore’s middle distillates stocks dipped below 8 million barrels for the first time in more than a year, tracking higher net exports week on week, official data showed on Thursday.
NEWS
– Finnish biofuel maker and oil refiner Neste NESTE reported stronger than expected core earnings for the second quarter, driven by soaring sales of sustainable aviation fuel (SAF), sending its shares rising 13% in early trading.
– Azeri BTC crude loadings from the Turkish port of Ceyhan were suspended as a test result was awaited on the contamination of organic chloride in the flows, a port agent told Reuters on Thursday.
– The oil tanker Omni, carrying Russian Urals crude, has been diverted away from the sanctioned Nayara Energy’s Vadinar port to discharge its cargo at the port of Mundra in India, according to shipping data and two industry sources on Thursday.
– Foreign oil tankers are being temporarily barred from loading at Russia’s main Black Sea ports following new regulations, two industry sources said on Wednesday, effectively blocking exports from Kazakhstan handled largely by a consortium partly owned by U.S. energy majors.
– California government officials are trying to find a buyer for Valero Energy’s VLO Benicia refinery near San Francisco, three sources familiar with the matter said, an unusual effort as the clock ticks down on the company’s planned closure of the facility in April.
Source: Reuters