Asia’s middle distillates markets turned slightly upbeat on the trading window, with a jet fuel window deal emerging, while spot June sales activity continued to trickle in discounted territory.
The derivatives market’s structure clawed back some of the previous session’s weakness, with diesel paper markets turning more backwardated and jet fuel paper swaps less in a contango price shape.
Jet fuel tenders were slightly more prevalent, with Chinese sellers and some regional buyers still hovering in the market for their June requirements. Discussion levels remained in discounts for northeast Asian export cargoes.
At the market’s close, refining margins (GO10SGCKMc1) held its ground at around $15.8 a barrel.
On the trading window, spot activity was scant and cash differentials (GO10-SIN-DIF) moved in line with the stronger paper market structure – gaining to premiums of 22 cents a barrel.
Regrade (JETREG10SGMc1) discounts widened further and closed the trading session at discounts of $1.05 a barrel.
The Asia-U.S. West Coast jet fuel arbitrage window turned slightly wider from a week earlier.
SINGAPORE CASH DEALS
– One jet fuel deal, no gasoil deal.
REFINERY NEWS
– A fire that erupted in a fuel oil tank on Monday at Ecuador’s biggest oil refinery is under control, state oil company Petroecuador and the country’s energy minister said, with the company adding that operations have halted as a precaution.
NEWS
– Russian Deputy Prime Minister Alexander Novak said on Monday that the OPEC+ group of leading oil producers has not discussed yet hiking output by another 411,000 barrels per day ahead of its meeting, RIA news agency reported.
– OPEC+ is doing its best to balance the oil market, but needs to be mindful of rising demand, United Arab Emirates Energy Minister Suhail Mohamed Al Mazrouei said on Tuesday.
Source: Reuters