Asia’s middle distillates markets continued to record more refiner sale activities for August cargoes, in line with earlier expectations, while ICE gasoil futures recouped some losses from the past three trading sessions.
Trafigura continued its buying spree for August-loading cargoes in the open trading window, albeit at discounts – likewise last week’s situation.
Meanwhile, refiner offers were aplenty for gasoil cargoes from South Korea since Monday’s trading session, but trades remained at discount levels.
China exports could likely stand between 600,000 tons and 800,000 tons for August shipment, compared with around 800,000 tons for July, two trade sources said.
Refining margins GO10SGCKMc1 surged to a one week high of nearly $16.50 a barrel – a reflection of the strength in ICE gasoil futures and slightly less bearish outlooks for the prompt markets.
Cash differentials GO10-SIN-DIF however sank into deeper discounts of almost 30 cents a barrel, as proactive selling interest continued to cancel out the buying interest from Trafigura.
Availability of spot cargoes remained sufficient with at least two refiners selling their August spot cargoes during the afternoon trading session at discounts.
Some demand from Japan’s refiners for August cargoes lingered in the market, with markets hoping that this buying could soak up excess cargoes in the near-term.
Regrade was little changed at discounts of around $1 a barrel at the market’s close.
SINGAPORE CASH DEALS
– One 10ppm gasoil deal, no jet fuel deal.
INVENTORIES
– U.S. crude and gasoline stockpiles were expected to have fallen while distillate inventories likely rose last week, a preliminary Reuters poll showed on Monday.
REFINERY NEWS
– TotalEnergies’ TTEF.PA 238,000 barrel-per-day (bpd) Port Arthur, Texas refinery returned to normal operation over the weekend, people familiar with plant operations said on Monday.
– Oil prices steadied on Tuesday after falling for the past two sessions, as investors remained cautious amid expectations of plentiful supplies and weak demand, while brushing off the U.S. presidential campaign upheaval. O/R
– Indonesian state-controlled refiner Pertamina has added Russian oil grades to its tender lists to buy September crude, three traders said on Monday.
– China’s newest mega refiner Shandong Yulong Petrochemical Co plans to start test running its 400,000 barrels-per-day plant around Sept. 30, according to two sources with knowledge of the matter.
Source: Reuters (Reporting by Trixie Yap; Editing by Maju Samuel)