Asia’s middle distillates market activity remained upbeat in the open trading window, with some April spot sales still under discussions, while the east-west spread remained narrow despite a surge in ICE gasoil futures.
Some price support came from the 2% gain in ICE gasoil futures, following talks of more conflict in the Middle East that could have a negative impact on east-west trade flows via the Suez Canal route.
0However, concerns on whether more swing diesel supplies will flow over to Asian markets remained a bearish driver with at least two-three cargoes likely bound for Asia-Pacific end-March loading.
April private offers from some northeast Asian refiners were heard in the market, but firm details could not be confirmed.
For jet fuel, demand emerged from regional buyer Pertamina for early April cargoes while offers emerged from India-based refiners.
On Monday’s market close, 10ppm sulphur gasoil refining margins steadied at around $13.6 a barrel.
Cash differentials gained 8 cents to premiums of 26 cents a barrel tracking the higher-priced window deal and also a wider backwardated timespread for April and May paper markets.
Regrade widened to around discount of $1.2 a barrel, reflecting the strength in gasoil paper markets compared with jet fuel.
SINGAPORE CASH DEALS
– One gasoil deal, no jet fuel deal.
NEWS
– China’s crude oil throughput in January and February rose 2.1% versus a year earlier, official data showed on Monday, supported by a new refinery and holiday travel, but weak refining margins persisted.
– Asia’s ability to supply sustainable aviation fuel will outpace regional demand this year and next as more production comes online, increasing exports and potentially lowering prices for the fuel, oil executives and analysts said.
– China’s retail sales growth quickened in January-February in a welcome sign for policymakers’ efforts to boost domestic consumption even as joblessness rose and factory output eased, underscoring the strains on an economy facing fresh U.S. tariff pressure.
– Oil prices traded higher on Monday after the United States vowed to keep attacking Yemen’s Houthis until the Iran-aligned group ends its assaults on shipping.
Source: Reuters