Asia’s diesel markets stayed quiet on the window even on Friday, with paper market structures barely moving as well, though cash differentials gained to one-month high.
October spot activity took centre stage for the week, with at least three refiners clearing their regular sales requirement – with discussion levels at premiums for 10ppm sulphur gasoil cargoes.
Sentiment support from the west remained a key driver for the market, with swing suppliers likely to continue redirecting their cargoes west.
Traders were however were watching to see how China exports could pan out next month, ahead of the release for third batch of fuel export quotas.
Regional demand for diesel however is little changed.
Jet fuel markets were volatile through the week, with traders weighing higher exports from China and a profitable east-west price spread.
Refining margins fluctuated in a narrow range, closing the week at nearly $19.2 a barrel.
On the trading window, much buying interest surfaced and 10ppm sulphur gasoil cash differentials (GO10-SIN-DIF) were propped up, closing at its highest level for this week of 92 cents per barrel.
Regrade (JETREG10SGMc1) held steady at discounts of around $1.85 a barrel.
SINGAPORE CASH DEALS
– No trades for gasoil or jet fuel.
INVENTORIES
– Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub were up 2.1% to 2.17 million tons.
REFINERY NEWS
– Malaysia’s Pengerang Refining Company (Prefchem) has offered more low-sulphur straight run (LSSR) fuel oil for sale in a tender that closed on Friday, market sources said, as a refining unit that processes the fuel remained shut.
NEWS
– India’s largest private port operator, Adani Group, has banned entry of tankers that are sanctioned by Western countries at all of its ports, three sources said and documents show, a move that could hit Russian oil supplies for two Indian refiners.
– Margarita Perez, the head of the commercial arm of Mexican state energy company Pemex, has left her position and will be replaced by finance ministry official Adan Garcia, a spokesperson for the company said on Thursday.
– Canada’s government is in discussions with energy companies and Alberta about eliminating a federal cap on emissions from the country’s oil and gas sector if the industry and province reduce their carbon footprint in other ways, three sources with knowledge of the talks said.
Source: Reuters