Asia’s 10 ppm sulphur gasoil refining margins GO10SGCKMc1 kicked off the week firmer at a two-week high, buoyed by continuous shortcovering in the swaps market, strong ICE gasoil futures and overall weaker crude futures on Monday afternoon.
Separately, spot premiums GO10-SIN-DIF under discussion for second-half July and first-half August low-sulphur diesel arrivals rose slightly on buying interest from two oil majors.
Buyers possibly took the cue from higher domestic wholesale diesel prices in China on the first trading day of the week as sellers raised offers on expectations of lower local supplies from some refiners who raised July export volumes in the past two weeks, one distributor said.
Talks of an increase in China’s retail prices at pumps soon also pushed domestic wholesale prices up by at least 200 yuan ($27.64) a metric ton.
On the jet fuel front, rare importer CPC Corp went on a quest for August delivery cargo amid expected volatile production rates at the refiner’s units given back-to-back maintenance plans.
Refining margins for the aviation fuel JETSGCKMc1 rose to $16.90 a barrel, while regrade JETREG10SGMc1 remained almost steady at a discount of around $1.50 a barrel.
SINGAPORE CASH DEALS O/AS
– No gasoil or jet fuel deal.
NEWS
– Oil prices dipped in Asian trade on Monday as investors tread cautiously ahead of fresh economic data from top consumers the United States and China this week, though expected crude supply cuts from Saudi Arabia and Russia limited losses.
– A fire at Kinder Morgan’s KMI.N refined oil products terminal in Pasadena, Texas, that occurred during construction was extinguished on Sunday, and no injuries were reported, the company said.
– Russia’s latest pledge to reduce oil exports will not require a similar cut in production, a government source told Reuters on Friday, because more fuel will be needed to meet domestic demand.
– Russia’s offline primary oil refining capacity has been revised up by 38% for July from the previous plan to 2.326 million tonnes, according to data from industry sources and Reuters calculations.
– China’s producer prices fell at their fastest pace in over seven years in June, while consumer prices teetered on the edge of deflation, adding to the case for policymakers to use more stimulus to revive sluggish demand.
– Iraq and French oil major TotalEnergies TTEF.PA on Monday signed a long-delayed $27 billion energy deal that aims increase oil production and boost the country’s capacity to produce power with four oil, gas and renewables projects.
Source: Reuters (Reporting by Trixie Yap; Editing by Sonia Cheema)