Asia’s middle distillates markets recorded a lack of window trades for the third straight session this week, but cash differentials remained supported from firmer buying interest and markets eyed May discussions next week.
Markets were mostly focused on the second batch of China’s refined fuel export quotas, of which clean product volumes were lower slightly year on year.
The earlier issuance was slightly unexpected by some, given that volumes have not been fully used up in the first batch of quotas yet.
Traders were further eyeing May spot discussions, set to emerge a week later, as refiners kick start their sales.
The 10ppm sulphur gasoil refining margins closed the trading session at around $13 a barrel, back to the near six-month low levels.
On the trading window, deals continued to remain minimal, though the buy-sell gap did narrow slightly reflecting the slightly more bullish buying activity.
Cash differentials surged by 10 cents per barrel from the previous session to 19 cents per barrel, with gains at 3 cents week on week.
Regrade hovered at discounts of $1.1 a barrel
SINGAPORE CASH DEALS
– No deals for both fuels
INVENTORIES
– Gasoil stocks independently held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell by nearly 3% on the week to their lowest since early November, data from Dutch consultancy Insights Global showed.
REFINERY NEWS
– Canada’s Suncor Energy said on Thursday it had identified and isolated the source of a hydrocarbon spill observed during regular monitoring at its 85,000-barrel-per-day refinery in Sarnia, Ontario.
NEWS
– Oil prices eased a touch but held near one-month highs on Friday as they headed for a third weekly gain on a tightening global supply outlook after the U.S. imposed tariffs against countries buying oil from Venezuela and placed curbs on Iranian oil trade.
– Indian port authorities denied entry to an ageing tanker loaded with Russian crude on Thursday due to inadequate documentation, sources familiar with the matter said, an unusual move that indicates tightened scrutiny of vessels carrying Russian oil.
– Top oil exporter Saudi Arabia may lower its crude prices for Asian buyers in May to a three-month low, tracking the steep declines in benchmark prices this month, traders said.
Source: Reuters