Spot premiums in Asia’s middle distillates markets advanced further on Monday as backwardation widened at the prompt trading months.

Cash differential for 10ppm sulphur gasoil clung to a one-month high, edging up to 34 cents a barrel.

Gasoil refining margins closed higher above $14 a barrel, extending last week’s gains.

However, further uptick in the benchmarks remained capped as the market remains amply supplied.

Meanwhile, two jet fuel trades emerged on Monday, buoying cash differentials for jet fuel at the prompt laycan.

Regrade narrowed to a discount of 93 cents a barrel.

SINGAPORE CASH DEALS

– No deal for gasoil, two deals for jet fuel.

REFINERY NEWS

– U.S. oil refiners are expected to have about 1.46 million barrels per day (bpd) of capacity offline in the week ending April 18, increasing available refining capacity by 286,000 bpd, research company IIR Energy said on Monday.

NEWS

– Oil prices edged up on Monday after Chinese data showed a sharp rebound in crude imports in March, although concerns that the escalating trade war between the United States and China would weaken global economic growth and dent fuel demand weighed.

– Kazakhstan’s oil output fell in the first two weeks of April from the March average, but is still above the OPEC+ quota it has pledged to meet after months of overproduction, an industry source told Reuters.

– Valero Mexico said it was notified by the country’s tax authority that it had been “momentarily” suspended from the registry of importers for motor fuels but that it was cooperating with an investigation.

– Marine fuel sales in Singapore improved in March after hitting a 20-month low in February, with volumes edging higher for key grades of residual fuel and marine gasoil, latest data showed.
Source: Reuters