Asia’s middle distillates markets continued to see minimal physical trading activity on the window, with a lack of deals for the second straight session, as mixed trading sentiment persisted.
Singapore is set to receive multi-year high of diesel imports as South Korea- and Taiwan-origin barrels have a lack of homes within other parts of Asia.
The situation however could abate after second-half March, when some swing supplies move out of the east to the west, several analysts said.
Refining margins (GO10SGCKMc1) rebounded for the first time in six sessions to slightly above $16 a barrel.
Cash differentials (GO10-SIN-DIF) were supported given the wider backwardation in the paper markets, against a backdrop of firmer buying interest for mid-March cargoes on the trading window.
Talks of more swing suppliers intending to send jet fuel east instead of west, owing to spot gains in the past two trading sessions, weighed on jet fuel markets.
Regrade (JETREG10SGMc1) declined slightly by 30 cents to a discount of around 75 cents a barrel, according to market sources.
SINGAPORE CASH DEALS
– No deals for both fuels
INVENTORIES
– U.S. crude oil and gasoline stocks rose last week while distillate inventories fell, market sources said, citing American Petroleum Institute figures on Wednesday.
– Singapore’s middle distillates stocks dipped slightly below 10 million barrels as the impact of higher diesel/gasoil net exports outweighed heavy jet fuel/kerosene inflows, official data showed on Thursday.
NEWS
– Singapore is set to import multi-year high diesel volumes for February, according to data from two shiptrackers and trade sources, as sellers shipped cargoes to Asia’s key oil storage hub amid tepid demand elsewhere.
– Saudi Arabia’s Aramco 2222 has signed an agreement to acquire a 25% equity stake in Unioil Petroleum Philippines, the company said in a statement late on Wednesday.
– Oil prices edged lower on Thursday after an industry report showing a build in U.S. crude stockpiles weighed on sentiment, falling back from gains made in the previous session on worries over supply disruptions in Russia.
– The Singapore trading arm of U.S.-based refiner Phillips 66 has recently leased a new floating storage vessel along the Singapore and Malacca Straits for storing fuel oil, market sources told Reuters.
Source: Reuters