Asia’s 10 ppm sulphur gasoil margins surged more than 21% week on week to $22.32 a barrel, rising for a third straight week, amid strong ICE gasoil futures performance despite cautious August demand-supply forecasts among traders.
The strength in Asian margins trended in line with gains in northwest Europe cracks this week.
Market fundamentals remained poor, with week-on-week spot cash premiums for 10 ppm sulphur gasoil GO10-SIN-DIF steady at $1.10 a barrel at the close of the week and trades thinning.
Spot August lots remained readily available from Taiwan, South Korea and India via tenders from producers since the beginning of the week. While a portion of Indian cargoes should be heading to the West to fill in the supply gaps, remaining Asian cargoes will stay in the region because of a closed arbitrage to the West, said Refinitiv Oil Research.
Jet fuel refining margins JETSGCKMc1 also recorded a 21% rise week on week, tracking the gasoil market, but thin trading liquidity amid lacklustrebuying interest limited market gains.
Regrade JETREG10SGMc1 widened to more than a three-month high discount of $2 a barrel as trading strength in gasoil futures stayed more prominent than jet fuel.
SINGAPORE CASH DEALS O/AS
– No gasoil or jet fuel trades.
INVENTORIES
– Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose for the first time in six weeks in the week to Thursday, data from Dutch consultancy Insights Global showed. ARA/
NEWS
– Oil prices crept up on Friday, buoyed by economic stimulus in slow-recovering China and falling inventories in the United States.
– Chinese authorities announced measures on Friday intended to help boost sales of automobiles and electronics with the goal of shoring up a sluggish economy, but the steps failed to impress investors who have been clamouring for stronger stimulus.
– Russia is not ruling out introducing quotas on the export of oil products to stabilise gasoline prices, Russian Deputy Prime Minister Alexander Novak said on Friday, according to state media, as gasoline wholesale prices hit an all-time high.
– Asian refiners have booked near-record volumes of U.S. crude to be shipped in August, replacing Middle Eastern oil, as competitive prices and ample supplies attracted heavy buying, according to trade sources.
Source: Reuters (Reporting by Trixie Yap; editing by Eileen Soreng)