Asia’s middle distillates markets turned upbeat on the trading window, with deals sprouting out for the first trading session this week, despite little change in market structures, spot market differentials and limited refiner spot sales activity.
Some China-origin diesel cargoes were still being discussed at slight discounts for end-August loading, though further details could not be confirmed.
The 10ppm sulphur gasoil refining margins (GO10SGCKMc1) declined for the third straight session, closing at around $18.6 a barrel.
Deals on the trading window were brisk for 500ppm sulphur gasoil mostly, though a lower deal for 10ppm sulphur gasoil weighed slightly on cash differentials (GO10-SIN-DIF). Premiums were assessed at $1.56 per barrel.
Jet fuel-wise, July exports from China, South Korea and southeast Asia were likely near five-year highs, traders say, though analysts are expecting the trend to be slightly shaky for August.
Meanwhile, shipments to the U.S. West Coast from northeast Asia have been minimal for July so far, despite the robust demand. Only around 150,000 metric tons have headed there in second-half July, Kpler shiptracking data showed.
Regrade (JETREG10SGMc1) widened slightly to discounts of around $2.65 a barrel.
SINGAPORE CASH DEALS
– Three gasoil deals, no jet fuel deals
INVENTORIES
– U.S. crude oil inventories rose sharply last week amid a decline in exports, while gasoline and distillate stockpiles fell, the Energy Information Administration said on Wednesday.
– Singapore’s middle distillates inventories bounced back from a week earlier to more than 8 million barrels, tracking a decline in net exports week-on-week, official data showed on Thursday.
NEWS
– The U.S. Treasury Department announced fresh sanctions on Wednesday on over 115 Iran-linked individuals, entities and vessels, in a sign the Trump administration is doubling down on its “maximum pressure” campaign after bombing Tehran’s key nuclear sites in June.
– Chevron has been granted a restricted U.S. license to operate in sanctioned Venezuela, three sources close to the decision said on Wednesday, adding that no money from oil proceeds can be transferred in any way to the administration of Venezuelan President Nicolas Maduro.
– U.S. jet fuel demand rose by 411,000 barrels per day (bpd) in the week ended July 25 to nearly 2.1 million bpd, its highest since December 2017, data from the Energy Information Administration showed on Wednesday.
Source: Reuters