Asia’s middle distillates markets were thinly discussed on the spot trading window ahead of a rollover in assessment months on Wednesday, though refiner sales for August cargoes stayed brisk and cash differentials rose to one-and-a-half-year highs.
Traders were eyeing more offers from China’s key exporters for August since it was already mid-July. At least two refiners have kickstarted their spot sales for both diesel and jet fuel since late last week.
Front-month markets were supported by talks of more flows to west of Suez markets this month and some sporadic enquiries from the Americas region.
July-loading supply from swing sellers in India and the Middle East to Asia-Pacific is still on track to stay minimal, traders say, with LSEG and Kpler shiptracking data showing volumes on this route to hit a three-month low this month.
For now, no Middle East-origin barrels in July are bound for the Singapore straits region, LSEG and Kpler shipping data showed.
On the trading window, no discussions had materialized just as in the previous session, despite a firm showing of buying interest. The 10ppm sulphur gasoil cash differentials gained slightly reflecting the firmer bid, closing at around $1.40 a barrel.
However, refining margins closed the trading session lower at around $19.70 a barrel, erasing most of the previous session’s gains.
The August regrade narrowed slightly to discounts of around $1.8 a barrel.
SINGAPORE CASH DEALS
– No deals for both fuels
INVENTORIES
– U.S. crude oil and gasoline stockpiles were expected to have fallen last week, while distillate supplies likely rose, a preliminary Reuters poll showed on Monday.
NEWS
– China’s crude oil throughput in June rose 8.5% from a year earlier, official data showed on Tuesday, as state-owned refineries increased operations and saw a recovery in profit, according to consultancies.
– Russia’s seaborne oil product exports in June were down 3.4% from May at 8.98 million metric tons amid planned domestic refinery maintenance and strong domestic demand, data from industry sources and Reuters calculations showed.
– Oil prices fell on Tuesday after U.S. President Donald Trump’s lengthy 50-day deadline for Russia to end the Ukraine war and avoid sanctions eased immediate supply concerns.
Source: Reuters