Thursday, 03 July 2025 | 21:59
SPONSORS
View by:

Asia Distillates-Markets mixed after a week-long of volatility amid split outlooks

Saturday, 29 June 2024 | 00:00

Asia’s middle distillates markets were mixed week on week following the past five sessions of volatility as traders were split on demand-supply drivers in the near term despite some strength from the West.

The market found strength from continuously strong prompt regional short-covering demand amid ongoing refinery production woes in southeast Asia mainly – with one small refiner still seeking for small prompt cargo sizes for delivery.

At least two more traders could be seeking to ship clean products out of Asia to the west of Suez markets via VLCCs such as Nissos Nikouria and Nissos Kea, some shipbrokers said.

Exports from several key refiners were notably little changed month on month comparing July sales these two weeks and June, which kept the market’s supply balance almost status quo.

Refining margins closed the trading week at around $16 a barrel, despite gaining to a two-month high in the previous trading session.

Meanwhile, cash differentials sank into a deeper discount from the previous session to 7 cents a barrel, down 7 cents week on week, as the prompt paper market lost steam at the end of the week.

In the jet fuel market, at least two China oil majors sold off their July cargoes at discounts of more than $1.50 a barrel, with export expectations for July likely to stay at around 1.9 million barrels.

Asia’s arbitrage windows to markets in the West such as northwest Europe and U.S. West Coast were volatile through the week, but still shaky for traders to engage in discussions and did not provide much support to the market.

Regrade was unchanged, tracking these fundamentals.

SINGAPORE CASH DEALS

– No deals for both fuels

INVENTORIES

– Independently held gasoil inventories in storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell by nearly 3% to just under 2.2 million tonnes, their lowest in around two months.

NEWS

– Top oil exporter Saudi Arabia may cut prices for crude grades it sells to Asia for a second month in August, tracking weakness in Middle East benchmark Dubai, trade sources said on Friday.

– Oil prices rose on Friday and were on course for a third straight weekly jump, buoyed by growing expectations that the U.S. Federal Reserve will soon start cutting interest rates and in anticipation of U.S. inflation data due later in the day.
Source: Reuters

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping
Next article
Back to list
Previous article

Newer news items:

Older news items:

Comments
SPONSORS

NEWSLETTER