Asia’s middle distillates markets continued to record a lack of window trading activity though timespreads in paper markets narrowed, while April sales from major refiners remained underway.
There were talks of China likely issuing its second batch of fuel export quotas soon, given that the oil majors are soon to be running out of general trade volumes, multiple trade sources said, though firm details have yet to surface in the market.
Exports for gasoline, diesel and jet fuel are estimated to be around 3.4 million metric tons for March, they added.
Meanwhile, April spot sales activity was underway from key refiners – though some traders remain positive that discussion levels will likely trend higher month-on-month.
Refining margins (GO10SGCKMc1) closed the trading session slightly higher at around $14.7 a barrel, clawing back some of previous session’s losses.
On the open trading window, activity was thin and a buy-sell gap continued to be prevalent, with cash differentials (GO10-SIN-DIF) moving in tandem with the paper market structure changes.
Regrade (JETREG10SGMc1) closed the trading session at around a discount of $1 a barrel, little changed from a day earlier.
SINGAPORE CASH DEALS
– No deals for both fuels
INVENTORIES
– U.S. crude oil and distillate stocks rose last week while gasoline inventories fell, market sources said, citing American Petroleum Institute figures on Tuesday.
– Middle distillates stocks held at Fujairah Oil Industry Zone climbed slightly to 2.356 million barrels in the week ended March 10, according to industry information service S&P Global Commodity Insights.
NEWS
– European buyers are unlikely to return to Russia’s energy sector if sanctions are lifted, as the bloc has diversified its power mix with renewable energy and alternative gas suppliers, ministers and executives said at a conference in Houston.
– Kazakhstan has yet to deliver its announced oil output and CPC Blend export cuts through the Caspian Pipeline Consortium (CPC), its main exporting route, five industry sources said.
– Oil prices edged up on Wednesday, buoyed by a weaker dollar, but mounting fears of a U.S. economic slowdown and the impact of tariffs on global economic growth capped gains.
Source: Reuters