Asia’s gasoil markets dipped again, with premiums hitting a new six-month low and margins at a four-month low, tracking the persistently poor performance in the prompt paper swaps and ICE futures market during the afternoon trading session on Thursday.

The November/December price structure weakened close to flat for the first time in more than six months, as prompt prices continued to come under pressure with traders either rolling over their cargoes forward or clearing their positions before the year-end.

Meanwhile, stockpiles in Singapore were near a two-year high and this could have had an indirect impact on the market’s price structure as well – since weakening prompt prices may encourage traders to store their cargoes instead.

More offers for December spot lots are expected to emerge from northeast Asia soon, one source said, adding that this could weigh further on fundamentals again.

Refining margins GO10SGCKMc1 fell below $22 a barrel at the close of the market.

Spot cash premiums GO10-SIN-DIF fell by almost 30 cents a barrel from the previous session, in line with the narrowing backwardation structure.

Jet fuel refining margins JETSGCKMc1 slipped as well at a slightly faster pace than the previous sessions, but overall expectations were still upbeat for heating demand from the kerosene sector to emerge soon.

Regrade JETREG10SGMc1 widened slightly to a discount of 60 cents a barrel, reversing the past few sessions of gains, as some swap sellers emerged.

SINGAPORE CASH DEALS O/AS

– One deal for 2500ppm sulphur gasoil, no jet fuel deal.

INVENTORIES

– Singapore’s middle distillates inventories rose 5.7% from last week to almost 10 million barrels, as net exports of both jet fuel/kerosene and gasoil declined further, official data showed on Thursday.

NEWS

– Global energy trader Gunvor GGL.UL is exiting fuel oil storage at the PetroSeraya terminal in the Asian oil hub of Singapore, with a Sinopec unit set to take over the space, several market sources told Reuters.

– Oil prices edged up on Thursday as markets shrugged off deflationary indicators in China and looked for further clues on the status of demand from the world’s two biggest oil consumers.

– Saudi Aramco has notified at least four North Asian buyers that it will supply full contractual volumes of crude oil in December, people with knowledge of the matter said on Thursday.
Source: Reuters (Reporting by Trixie Yap; Editing by Maju Samuel)