Asia’s diesel market structure went into a steeper backwardation, with window activity staying brisk amid persistently lower-priced offers on Friday.
Meanwhile, east to west shipments of diesel and gasoil exports were estimated at 1.2 million metric tons this week and 1.5 million tons last week, data from a Kpler report showed.
Markets were factoring in at least two very large crude carriers to ship up to 550,000 tons of diesel and gasoil from the Middle East to Europe for end-September to end-October arrival.
Spot October deals by refiners for the week were mixed, with earlier loading cargoes still discussed at premiums while later loaders were sold at discounts.
Refining margins (GO10SGCKMc1) rebounded from the previous trading session, posting around 30 cent gains week on week.
Cash differentials (GO10-SIN-DIF) clawed back from some previous trading sessions, closing at 90 cents per barrel on Friday, little changed from a week earlier. Western trading major BP sold one more 150,000-barrel cargo on window for early Oct shipment, carrying the previous session’s trend
Jet fuel markets were likely to continue seeing east-west flows, given the wider arbitrage spreads compared with diesel that can support northeast Asian sellers’ margins.
Regrade (JETREG10SGMc1) narrowed to discounts of $1.35 a barrel.
SINGAPORE CASH DEALS
– One gasoil deal, no jet fuel deal
INVENTORIES
– Oil product stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell nearly 3.9% last week, data from Dutch consultancy Insights Global showed on Thursday.
REFINERY NEWS
– The crude processing unit (CPU) tripped at Pemex-owned Deer Park oil refinery in Texas, according to a regulatory filing on Thursday.
NEWS
– Russia has increased its planned oil loadings from the Baltic port of Ust-Luga and the Black Sea port of Novorossiisk for September, following disruptions at its main western outlet, Primorsk, two sources familiar with the schedule told Reuters.
– Russian gas producer Novatek supplied about 70,000 metric tons of gas condensate to the Black Sea port of Novorossiisk in September amid the shutdown of its Ust-Luga gas condensate complex, two sources familiar with the matter told Reuters.
– Russia’s seaborne oil product exports in August were up 8.9% from July at 9.44 million metric tons on rising fuel production, as several refineries completed planned maintenance, data from industry sources and Reuters calculations showed.
Source: Reuters