Asia’s middle distillates markets were thinly discussed in the trading window, though paper market activity remained brisk, while April sales momentum from key refiners picked up pace.
Spot premiums for April seem to be increasing to reflect some production losses from refinery maintenance and slightly fewer swing cargoes heading to Asia recently, one trade source said.
There were discussions of some April jet fuel offers from Chinese refiners as well, but further details could not be confirmed.
On demand, buying interest did surface from Vietnam, but volumes were considered to be at “minimal” levels, one trade source said.
However, a portion of the market was cautious on regional diesel demand as buying interest remains curtailed in some parts of Southeast Asia.
Refining margins (GO10SGCKMc1) fell further from the previous trading session to around $14.3 a barrel, with levels still remaining at near one-month lows.
The 10ppm sulphur gasoil cash differentials (GO10-SIN-DIF) slipped slightly to reflect a narrower March-April timespread, but the buy-sell gap kept window activity at a standstill.
Jet fuel cash markets slipped to 28 cents a barrel as lower-priced offers were plentiful in the trading window.
Regrade (JETREG10SGMc1) barely moved, remaining at discounts of around $1.1 a barrel.
SINGAPORE CASH DEALS
– No deals for both fuels
INVENTORIES
– U.S. crude oil stockpiles were expected to have risen last week, while distillate and gasoline inventories likely fell, a preliminary Reuters poll showed on Monday.
NEWS
– Policymakers and energy executives need to rethink energy transition plans and stop doubling down on elements of the transition that have failed, the CEO of state oil giant Saudi Aramco 2222 said on Monday, stressing the need for investment in fossil fuels to meet global demand.
– Indonesia will build oil refineries on several of its islands, including Kalimantan and Sulawesi, with a total capacity of 1 million barrels per day, upgrading from a planned single refinery with a 500,000 bpd capacity, the energy minister said.
– Oil prices pared earlier losses to inch up during trade on Tuesday, despite concerns over a potential U.S. recession, the impact of tariffs on global growth and as OPEC+ sets its sight on ramping up supply.
– U.S. Energy Secretary Chris Wright said on Monday he was planning to work with Congress on cancelling previously mandated sales from the Strategic Petroleum Reserve as one way to address low stockpiles.
Source: Reuters