Asia’s middle distillates markets turned quiet on Monday, while derivatives prices weakened further by 3-4% as traders mostly engaged in profit-taking while awaiting a clearer trade direction.
The lack of supply-demand fluctuations is probably resulting in some cautiousness among traders on how much prices could move further, multiple trade sources said.
This comes against a backdrop of likely ample exports from China next month for both diesel and jet fuel, they added.
Some spot deals for jet fuel from northeast Asia for end-June loading were done at wider discounts of nearly $1 a barrel, three source said.
Meanwhile, the 10ppm sulphur gasoil refining margins (GO10SGCKMc1) declined to $18.8 a barrel, a one-week low.
On the trading window, discussions were scant though bids remained firm. The 10ppm sulphur gasoil cash differentials (GO10-SIN-DIF) dipped back to $1.17 a barrel, a 12-cent drop from the previous trading session.
Regrade (JETREG10SGMc1) narrowed slightly to discounts of $1.50 a barrel, as jet fuel paper markets dipped slower than gasoil.
SINGAPORE CASH DEALS
– No deals for both fuels
NEWS
– Japan’s Nippon Yusen and Mitsui O.S.K. Lines said on Monday they have instructed their vessels to minimise the time spent in the Gulf as they continue to transit the Strait of Hormuz following the U.S. strikes on Iranian nuclear facilities.
– Oil prices jumped on Monday to their highest since January as the United States’ weekend move to join Israel in attacking Iran’s nuclear facilities stoked supply concerns.
– Goldman Sachs flagged risks to global energy supply amid concerns over a potential disruption in the Strait of Hormuz that would lead to significant spikes in oil and natural gas prices, the bank said in a note dated Sunday.
– Airlines on Monday were weighing how long to suspend Middle East flights as a conflict which has already cut off major flight routes entered a new phase after the U.S. attacked key Iranian nuclear sites and Tehran vowed to defend itself.
Source: Reuters