Asia’s middle distillates markets were thinly discussed on Tuesday, with limited physical trading activity and fewer February refiner offers emerging, though bullishness for forward markets was evident.
Continued weakness in ICE gasoil markets over the past few trading sessions contributed to the slightly thinner activity, but traders were still bullish about forward markets.
Supplies may tighten soon given planned maintenance programmes in northeast Asia, together with the lower crude runs in China from teapots, two trade sources said.
However, refining margins (GO10SGCKMc1) bucked the uptrend and reversed earlier gains, slipping back to around $16.3 a barrel.
Complex refining margins in Singapore rebounded slightly but were still averaging at below 50 cents per barrel.
Cash differentials (GO10-SIN-DIF) closed the trading session at around $1.15 a barrel, reflecting the paper market’s narrower backwardation.
Meanwhile, for jet fuel, China-origin exports are still expected to hit around 2 million barrels for February – given the strength in export margins and ample supplies.
Regrade (JETREG10SGMc1) widened further to around discounts of $2.3 a barrel, reflecting the slight weakness in jet fuel markets.
SINGAPORE CASH DEALS
– No deals for both fuels
NEWS
– China’s reliance on oil imports is projected to remain at around 70% in the country’s 2026-2030 five-year plan, according to an outlook released by state-owned China National Petroleum Corp (CNPC) on Tuesday.
– India expects its purchase of U.S. energy products to increase after President Donald Trump’s announcement to maximise U.S. oil and gas production, said Oil Minister Hardeep Singh Puri in a meeting on Tuesday.
– Abu Dhabi National Oil Company’s logistics arm has transferred its tankers to Navig8 after it bought 80% of the firm for more than $1 billion and will cut part of its workforce, the state oil giant said in a statement.
– U.S. President Donald Trump said on Monday that his administration would likely stop buying oil from Venezuela and was looking “very strongly” at the South American country.
– Oil prices fell on Tuesday as investors assessed U.S. President Donald Trump’s plans to apply new tariffs later than expected while boosting oil and gas production in the United States.
Source: Reuters