Asia’s middle distillates’ spot activity rose at a quicker pace on Wednesday, with more window deals emerging and diesel spot premiums gaining to two-week highs while refiners offered spot July cargoes.
Taiwan’s Formosa Petrochemical Corp started its July spot sale for both 10ppm and 500ppm sulphur gasoil via a spot tender that closes a day later.
Traders were eyeing whether discussion levels were at similar levels from a month earlier to gauge supply-demand expectations.
Meanwhile, stocks at Fujairah Oil Industry Zone were at multi-year lows, industry data showed.
Window trades were brimming, with spot discussion at a slightly more upbeat pace than the previous trading session. Cash differentials for 10ppm sulphur gasoil (GO10-SIN-DIF) hit a two-week high premium of 46 cents per barrel.
Jet fuel differentials, however, skidded back into almost negative territory as front-month paper prices came under pressure amid lower prompt physical offers on window.
Separately, 10ppm sulphur gasoil refining margins (GO10SGCKMc1) rebounded to slightly above $16.1 a barrel, reversing most of the earlier sessions’ losses.
Regrade (JETREG10SGMc1) for July widened slightly to discounts of over $1.1 a barrel.
SINGAPORE CASH DEALS
– Two gasoil deals, no jet fuel deals
INVENTORIES
– Middle distillates stocks held at Fujairah Oil Industry Zone declined to under 1 million barrels for the week ended June 2, according to industry information service S&P Global Commodity Insights.
NEWS
– Airlines need to reach long-term agreements to buy bigger quantities of sustainable aviation fuel if they want to boost global volumes of the lower-emission fuel required for industry climate targets, a Bayer executive said on Tuesday.
– Oil prices held steady on Wednesday as concerns around the OPEC+ group’s next output increase were offset by Canadian supply pressures due to wildfires there, while global trade tensions continue to linger.
– Venezuela’s oil exports remained almost unchanged last month as increased shipments to customers in China offset a decline in U.S.-authorized sales, according to vessel-tracking data and internal documents from state company PDVSA.
Source: Reuters