Asia’s middle distillates markets were thinly discussed in the open trading window, with prices taking further beating, while May refiner spot cargoes were yet to be in sight.

Paper market prices will probably be moving in tandem with the crude price movements in the near-term, two trade sources said, with the macroeconomic situation looking bearish.

A portion of the markets probably closed their positions earlier to avoid the current volatility swing, two other trade sources said.

Meanwhile, the front-month east-west arbitrage for diesel remained narrow at discounts of around $17 per metric ton.

Refining margins closed firmer at slightly above $14 a barrel, given the softer performance in crude markets.

On the trading window, support came from a major buyer but a buy-sell gap hindered overall negotiations.

The 10ppm sulphur gasoil cash differential barely moved, steadying at premiums of 16 cents per barrel.

Meanwhile for jet fuel, support came from the opened arbitrage between Asia and the U.S. west coast – though shipping enquiries again were minimal.

Regrade narrowed further to discounts of around 65 cents a barrel.

SINGAPORE CASH DEALS

– No deals for both fuels

REFINERY NEWS

– PBF is restarting some refinery process units at the Martinez, California facility on Thursday that were not directly impacted by a fire in February, the company said.

NEWS

– Oil slid around 4% on Monday to its weakest since 2021, while most commodity markets including metals tumbled as an intensifying trade war between the United States and China triggered worries over demand for raw materials.

– Run rates for China’s struggling independent oil refiners have nudged up recently, but still face near-term pressure over tepid domestic fuel demand and supply risks from U.S. sanctions and tariffs, industry participants and analysts said.

– Saudi Arabia, the world’s top oil exporter, on Sunday slashed crude oil prices for Asian buyers in May to their lowest in four months, following a recent shock decision by the OPEC+ oil group to speed up oil output hikes.
Source: Reuters