Asia’s 10 ppm sulphur gasoil cracks rose for the first time in six sessions, up more than $2 at $26.49 a barrel on Monday, tracking gains in both ICE gasoil futures and crude prices, with November cargo discussions to kick off this week.
The market awaits more November-loading discussions to emerge from northeast Asia, with a portion of trade sources also keen to see if Indian refiners will have excess volumes following an increment in domestic capacity.
Export estimates from China remained at around 1.3 million metric tons for diesel and up to 1.9 million tons for jet fuel.
The re-emergence of Russian barrels after the ban on exports was partially lifted could increase the supply, capping overall gains.
Spot premiums gained to $2.13 a barrel, reflecting the wider backwardation in the October-November price structure, though a buy-sell gap remained evident.
Jet fuel refining margins were underpinned by a continuously opened Asia-U.S. West Coast arbitrage window. One more medium-range vessel carrying jet fuel will likely be heading from Ulsan to the U.S. West Coast region, Kpler shiptracking data showed.
Regrade, however, widened slightly to around $2.25 a barrel as gasoil price performance remained stronger and discussions were limited for the aviation fuel in comparison.
SINGAPORE CASH DEALS
– One gasoil deal, no jet fuel deal.
REFINERY NEWS REF/OUT
– Nghi Son, Vietnam’s largest refinery, is in the process of a restart after major maintenance that started late-August, a company source with knowledge of the issue said on Monday.
– India HPCL exec says it has commissioned its 3-million-metric-tons-per-year Vizag hydrocracker last week.
NEWS
– The United Arab Emirates is refashioning state-owned Abu Dhabi National Oil Company (ADNOC) in the image of an international oil major by stepping up its global expansion and finding new revenue streams to maximise earnings for the Gulf state.
– China has issued a fourth batch of 2023 crude oil import quotas, raising the volume for the year to 203.64 million metric tons, three refinery sources with direct knowledge of the issue said on Saturday.
– Oil prices were up more than $3 a barrel in Asian trade on Monday as military clashes between Israel and the Palestinian Islamist group Hamas deepened political uncertainty across the Middle East and raised concerns about supplies.
– Russia’s Deputy Prime Minister Alexander Novak said on Monday that the country’s ban on gasoline exports and cross-border sales of diesel by railway remained in place.
– India’s Hindustan Petroleum Corp HPCL.NS will cut its diesel purchases from other refiners as it has commissioned a 3 million tons per annum (mtpa) hydrocracker at its recently upgraded Vizag refinery, its head of refineries S Bharathan said on Monday.
Source: Reuters (Reporting by Trixie Yap; Editing by Sherry Jacob-Phillips)