Asia’s spot cash premiums for 10 ppm sulphur gasoil firmed for the third consecutive session this week to more than a three-month high, buoyed by strong buying interest for prompt end-July loading parcels from two major trading houses.
The uptrend was ultimately capped after more active sellers for early August parcels came to the open trading market. Separately, producers such as Taiwan’s FPCC also issued their sales tender for August-loading diesel.
A portion of sellers were also bearish after ICE gasoil futures traded sideways, although the main contract month August edged higher towards the close of Asian trade.
Refining margins, however, edged down 5 cents, reflecting the mixed buy-sell sentiment in the market.
On the jet fuel front, the market turned quiet and trading activity was muted with cautious trading sentiment reflected in the margin decrease day on day.
Regrade widened back to around a discount of $1.35 a barrel, as the arbitrage for Asian export cargoes to the U.S. West Coast narrowed slightly again.
SINGAPORE CASH DEALS
– No gasoil or jet fuel deal.
REFINERY OUTAGE
– PBF Energy’s 156,400 barrel-per-day capacity oil refinery in Martinez, California released petroleum coke dust, a byproduct of the refining process, on neighboring communities, Contra Costa Health (CCH) Services and the refiner said on Tuesday.
INVENTORIES
– U.S. crude oil, gasoline and distillate inventories all rose last week, according to market sources citing American Petroleum Institute figures on Wednesday. Crude stocks rose by about 3 million barrels in the week ended July 7, according to the sources, who spoke on condition of anonymity. Gasoline inventories rose by about 1 million barrels, while distillate inventories rose by about 2.9 million barrels.
– Middle distillates stockpiles at Fujrairah Oil Industry Zone fell by 342,000 barrels week on week to 3.217 million barrels for the week ended July 10, according to industry information service S&P Global Commodity Insights.
NEWS
– The U.S. Energy Information Administration (EIA) cut its forecast for 2023 U.S. crude oil production by 50,000 barrels per day after the Organization of the Petroleum Exporting Countries (OPEC) and allies extended output cuts through 2024.
– Water levels on the river Rhine in Germany are rising after heavy rain in southern regions but are still too shallow in northern and central areas for cargo vessels to sail fully loaded, commodity traders said on Wednesday.
– Prices for sour crude oil have climbed globally this month after top exporter Saudi Arabia hiked prices and expanded production cuts of higher-sulfur oil in the first sign its efforts to prop up global prices is having an impact.
Source: Reuters (Reporting by Trixie Yap; Editing by Maju Samuel)