Asia’s refining margin for gasoil extended a rebound on Wednesday, though market fundamentals continued to lean to the bearish side amid an ample supply outlook.
Cracking margins GO10SGCKMc1 rose to above $25 a barrel, though cash differentials GO10-SIN-DIF remain trapped in discounts as more December supplies loomed.
India’s MRPL offered more gasoil and jet fuel for December loading, in a tender that closes on Nov. 23. MDIS/TENDA
Meanwhile, jet fuel activity remains muted, with cash differentials little changed at premiums of about 55 to 60 cents a barrel.
The Asia-U.S. arbitrage window continued to be open, with regrade discounts JETREG10SGMc1 at 40 cents a barrel.
SINGAPORE CASH DEALS O/AS
– No gasoil deal, no jet fuel deal.
INVENTORIES
– U.S. distillate inventories fell by about 3.5 million barrels in the week ended Nov. 17, according to market sources citing American Petroleum Institute figures on Tuesday. API/S
– Middle distillates stockpiles in Fujairah Oil Industry Zone rose to a six-week high of 2.165 million barrels for the week ended Nov. 20, according to industry information service S&P Global Commodity Insights.
NEWS
– Oil stayed within a narrow range on Wednesday in quiet pre-U.S. Thanksgiving holiday trading, as the market awaited news on output cuts from the OPEC+ producers group and looked for confirmation of a sharp build-up in U.S. crude stocks.
– China will launch a series of pilot projects to spur domestic production and consumption of biodiesel, the National Energy Administration has said, beefing up environmental efforts in an area where the country lags other big economies.
– The Russian government is considering lifting remaining export restrictions on summer grade diesel but said there were no such plans for winter diesel, TASS news agency quoted Energy Minister Nikolai Shulginov as saying on Tuesday.
– TotalEnergies began restarting the 76,000-barrel-per-day (bpd) gasoline-producing fluidic catalytic cracker-2 (FCC-2) at its 238,000-bpd Port Arthur, Texas, refinery on Tuesday, said people familiar with plant operations.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shounak Dasgupta)