Asia’s middle distillates markets saw more activity in the open market and several refiners emerged to offer spot jet fuel cargoes for prompt September loading against a backdrop of lucrative margins.
More sellers for spot parcels emerged for end-September loading, as margins remained strong for refiners to engage in jet fuel sales. China’s WEPEC and Kuwait’s KPC both issued open market tenders for end-September loading parcels.
Regrade JETREG10SGMc1, the discount between jet fuel swaps and gasoil swaps, remained close to around $1 a barrel.
More sellers are emerging to see if they can sell the aviation fuel at premiums to Singapore quotes, one northeast Asian refiner said.
Separately, for 10 ppm sulphur gasoil, spot cash premiums GO10-SIN-DIF were mostly steady at $2.64 a barrel as a mixed bag of buyers and sellers remained for September and October cargoes.
Refining margins for 10 ppm sulphur gasoil climbed for a second session to almost $29 a barrel.
SINGAPORE CASH DEALS O/AS
– Two gasoil deals, no jet fuel deals.
INVENTORIES
– Crude stocks dropped by about 11.5 million barrels in the week ended Aug. 25, according to the sources citing American Petroleum Institute figures on Tuesday, who spoke on condition of anonymity. Gasoline inventories rose by about 1.4 million barrels, while distillate inventories rose by about 2.5 million barrels. API/S
– Middle distillates stocks at Fujairah Oil Industry Zone fell to more than a six-month low for the week ended Sept. 4, according to industry information service S&P Global Commodity Insights.
NEWS
– The G7 and allies have shelved regular reviews of the Russian oil price cap scheme, people familiar with the matter told Reuters, even though most Russian crude is trading above the limit because of a rally in global crude prices.
– Saudi Arabia and Russia on Tuesday said they would extend voluntary oil cuts to the end of the year, despite a rally in the oil market and analyst expectations of tight supply in the fourth quarter.
– Global trading house Trafigura TRAFGF.UL and U.S. software developer Palantir Technologies on Wednesday launched a platform to calculate carbon emissions in supply chains for the energy sector.
Source: Reuters (Reporting by Trixie Yap; Editing by Shinjini Ganguli)