Asia’s 10-ppm sulphur gasoil cash premiums came under pressure as the market was awaiting October negotiations, with at least three northeast Asian refiners expected to emerge with spot sale tenders in the next few days.
Chinese sellers are expected to emerge from the foray as well.
Spot premiums for 10 ppm sulphur gasoil fell for the fourth consecutive session to $2.12 a barrel as lower priced sellers were evident as the market structure between prompt and forward prices became less backwardated.
Regional demand, however, was expected to remain steady for October, several market sources said.
Refining margins were supported by gains in ICE gasoil futures towards the end of the trading session, surging to slightly above $31 a barrel, amid overall weaker crude prices.
On the jet fuel front, support came from the lucrative arbitrage window for Asian sellers to consider selling cargoes to the U.S. West Coast.
At least one more cargo loading next week from South Korea will be heading to the U.S. West Coast, shiptracking data from Kpler showed.
Refining margins for the aviation fuel closed the trading session just shy of $30 a barrel, while regrade JETREG10SGMc1 was almost steady at close to a discount of $1.50 a barrel.
SINGAPORE CASH DEALS
– No deals for gasoil or jet fuel.
REFINERY NEWS REF/OUT
– The fire-damaged, gasoline-producing fluidic catalytic cracker (FCC) at Marathon Petroleum’s MPC.N 593,000 barrel-per-day (bpd) Galveston Bay Refinery in Texas City, Texas, is expected to be shut until late next week, said people familiar with plant operations on Friday.
NEWS
– Russia’s domestic fuel shortage should ease somewhat soon as repairs works are nearing completion at a few oil refineries, which will provide more gasoline, Russia’s news agencies cited Energy Ministry Nikolai Shulginov, as saying on Monday.
– Oil prices dipped on Monday after fresh Saudi and Russian crude output cuts had driven prices to 10-month highs last week.
Source: Reuters (Reporting by Trixie Yap; Editing by Krishna Chandra Eluri)