Asia’s middle distillates markets remained thinly discussed in the open trading window, though a myriad of spot sales from refiners carried on for January.
Window deals for 10ppm sulphur gasoil remained scant for the past week, though January discussions for spot cargoes were still ongoing at the sidelines.
So far, South Korean refiners have offered up to eight 10ppm sulphur spot cargoes, while Taiwan’s FPCC has sold up to two 10ppm sulphur gasoil cargoes.
On the jet fuel front, January refiner sales have mostly been done at small discounts so far – a complete turn from earlier premiums discussed in end-December cargoes.
Spot premiums were little changed, tracking a lack of discussions in the open trading window and scant offers since the start of the week.
Refining margins climbed back from the past few sessions of weakness, to around $16.5 a barrel, as crude prices dipped at a quicker pace and ICE gasoil markets were thinly discussed.
Meanwhile, regrade was little changed, hovering at discounts of around 50 cents a barrel.
SINGAPORE CASH DEALS
– No deals for both fuels
INVENTORIES
– Singapore’s middle distillates stockpiles recorded a drawdown for the first time in two weeks, against a backdrop of rising net exports for both diesel/gasoil and jet fuel/kerosene, official government data showed on Thursday.
– U.S. crude and distillate inventories fell in the week ended Dec. 13 as exports surged, while gasoline stockpiles rose, the Energy Information Administration (EIA) said on Wednesday.
REFINERY NEWS
– Ukraine struck the Novoshakhtinsk oil refinery in Russia’s Rostov region overnight, its military said on Thursday.
NEWS
– Sinopec said on Thursday it expects China’s petroleum consumption to peak by 2027 as diesel and gasoline demand weakens, while noting that the incoming Trump administration represented a major question mark for China’s energy industry.
– Indonesia will increase its export levy for crude palm oil to 10% from the current 7.5%, to finance higher biodiesel subsidy, its chief economic minister said on Thursday.
– Britain sanctioned 20 ships on Tuesday for allegedly carrying illicit Russian oil, its latest measures targeting Russia’s so-called shadow fleet in response to the 2022 invasion of Ukraine.
Source: Reuters (Reporting by Trixie Yap; Editing by Mohammed Safi Shamsi and Devika Syamnath)