Asia’s 10 ppm sulphur gasoil and jet fuel margins surged by almost $1.50 a barrel tracking overnight gains in the West, with support coming from supply disruptions worries there.
These concerns came after a fire at one portion of Marathon’s 593,000 barrels per day Galveston Bay refinery killed one and injured two.
Gains were subsequently capped by plentiful of sellers in the Asian trading session remained aplenty as the region’s demand-supply fundamentals were still weak.
Refining margins for 10 ppm sulphur gasoil (GO10SGCKMc1) firmed to a one-month high of $16.27 a barrel, likewise jet fuel margins (JETSGCKMc1) which were at $15.44 a barrel.
Cash differentials (GO10-SIN-DIF) gained slightly to a discount of around 30 cents, but the number of sellers for June parcels continue to exceed buyers.
SINGAPORE CASH DEALS
– No gasoil or jet fuel deals.
INVENTORIES
– U.S. crude oil and gasoline stockpiles were seen falling last week, with distillate inventory expected to have increased last week, a preliminary Reuters poll showed on Monday. Analysts estimated stockpiles of gasoline USOILG=ECI fell by about 1 million barrels last week, while distillate (USOILD=ECI), which include diesel and heating oil, increased by about 200,000 barrels.
NEWS
– China’s oil refinery throughput in April rose 18.9% from a year earlier, data showed on Tuesday, as refiners maintained high runs to meet recovering domestic fuel demand and stockpile inventories ahead of the summer travel season.
– The U.S. Department of Energy said on Monday it will purchase 3 million barrels of crude oil for the Strategic Petroleum Reserve for delivery in August, and asked that offers be submitted by May 31.
– U.S. oil output from the seven biggest shale basins is due to rise in June to the highest on record, data from the Energy Information Administration showed on Monday.
– Platts, part of S&P Global Commodity Insights, has launched new price assessments for tanker base freight rates that factor in pricing for alternative fuels, the agency said on Tuesday.
– Prime Minister Justin Trudeau visited Alberta on Monday as raging wildfires prompted mass evacuations and reduced energy production in Canada’s main oil-producing province, where meteorologists expect virtually no rain for 10 days or so.
– India’s Reliance Industries Ltd RELIANCE1!, operator of the world’s biggest refining complex, has been diesel fuel at 1 rupee per litre cheaper than state fuel retailers since Monday, several petrol pump operators in the country told Reuters.
Source: Reuters