Asia’s middle distillates markets kickstarted the new year in a slightly slow fashion, despite more activity on the trading window, as traders awaited refiner sales to start for February shipments.
Offers are probably going to emerge only a week later, two trade sources said, as refineries mull their sales plans.
Buying from Indonesia, however, did emerge for prompt second-half January spot deliveries, after the state-owned energy major, Pertamina, already secured some term cargoes earlier for first-quarter delivery.
Spot market differentials for both 10ppm sulphur gasoil (GO10-SIN-DIF) and jet fuel (JET-SIN-DIF) fell, reflecting the market’s narrower backwardated swaps structure. Jet fuel discussion levels came under pressure from lower-priced deals, with the market flipping into a discount of 1 cent per barrel.
Meanwhile, the gasoil exchange of futures for swaps (EFS) spread remained at one of its narrowest discounts of around $17 per ton in the past year, LSEG pricing data showed, with sellers likely to remain keen on sending cargoes east instead of west for the near-term.
Refining margins (GO10SGCKMc1) were little changed, closing the trading session at around $16 a barrel.
Regrade (JETREG10SGMc1) for February closed the trading session at discounts of around $1.50 a barrel.
SINGAPORE CASH DEALS
– No gasoil deal, one jet fuel deal
INVENTORIES
– Middle distillates stockpiles at Fujairah Oil Industry Zone slipped to slightly more than a one-month low of 1.968 million barrels for the week ended Dec. 30, according to industry information service S&P Global Commodity Insights.
– U.S. crude oil stocks fell last week while fuel inventories rose, market sources said, citing American Petroleum Institute figures on Tuesday.
– Singapore’s middle distillates stockpiles fell to a six-month low to below 9 million barrels, tracking firmer net export volumes of diesel/gasoil, official government data showed on Thursday.
NEWS
– Oil prices nudged higher on Thursday, the first day of trade for 2025, as investors returning from holidays cautiously eyed a recovery in China’s economy and fuel demand following a pledge by President Xi Jinping to promote growth.
– China’s central bank said on Thursday that it conducted the second round of operations under a newly created funding scheme aimed at supporting the stock market for an amount of 55 billion yuan ($7.5 billion).
– Indonesia has yet to implement a higher mandatory blend of biodiesel planned for Jan. 1 as industry participants await the technical regulations for the rollout, causing confusion among palm oil traders.
Source: Reuters