Asia’s middle distillates markets kicked off the week with slow trading momentum on the physical window as traders awaited more spot March sales, while the east-west arbitrage discounts steadied at one-month-wide levels.

Paper markets also saw a bout of thin trading activity, one trade source said.

The east-west arbitrage price spread gained slightly to discounts of around $31 per metric ton, with levels holding at one-month highs.

Meanwhile, there were talks of several South Korea spot cargoes for March loading being sold at wider discounts than a month earlier, but further details could not be confirmed.

For jet fuel, South Korea’s SK Energy sought to sell at least one 300,000-barrel cargo late last week but discussions fell through due to the wide discounts.

The 10ppm sulphur gasoil refining margins (GO10SGCKMc1) closed the trading session 40 cents lower at slightly below $16.5 per barrel.

Cash differentials (GO10-SIN-DIF) gained further to 37 cents per barrel, driven in part by the lack of discussions and limited lower-priced offers in the open trading window.

Regrade (JETREG10SGMc1) steadied at discounts of around 90 cents per barrel.

SINGAPORE CASH DEALS

– No deals for both fuels

NEWS

– Oil flows via the Caspian Pipeline Consortium (CPC) were reduced after a drone struck the Kropotkinskaya pumping station in Russia’s southern Krasnodar region, the CPC said in a statement.

– QatarEnergy has lowered the term price for al-Shaheen crude oil loading in April, setting it at a premium of $3.50 per barrel above Dubai quotes, trade sources said.

– Malaysia will crack down on fraud in the used cooking oil industry, its deputy commodities minister told Reuters, as western governments investigate whether shipments of the biofuels feedstock from Asia actually contain virgin oil.
Source: Reuters