Asia’s middle distillates markets recouped some losses on the price front as upbeat supply-demand expectations in the coming month continued to buoy discussion levels.
Regional buying interest did emerge for October spot cargoes as two buyers emerged, carrying on the momentum from a day earlier, providing some demand support for the market.
Talks of China-origin barrels for October loading falling below 500,000 metric tons supported the market from a supply perspective.
Both drivers were supported for paper markets, with October-November price backwardation steepening further as October continued to trade at higher premiums.
Refining margins GO10SGCKMc1 for 10ppm sulphur gasoil, however, rebounded to almost $13 a barrel, clawing back losses in the past two weeks as a reflection of the quicke-paced price falls in crude markets.
Cash differentials GO10-SIN-DIF gained for the fourth straight session to close at a discount of 24 cents a barrel, tracking strength in prompt paper markets and steady buying interest on the window from Unipec.
Regrade JETREG10SGMc1 dipped further for the fourth straight session this week and was at a discount of 76 cents a barrel at the market’s close.
SINGAPORE CASH DEALS O/AS
– No deals for both fuels
INVENTORIES
– U.S. oil inventories fell across the board last week, the Energy Information Administration said on Wednesday, drawing down more than expected, with crude oil stockpiles hitting their lowest level in nearly 2-1/2 years.
– Singapore’s middle distillates inventories plunged below 10 million barrels for the first time in more than two months despite the city-state turning a net importer of jet fuel/kerosene for the week, official data showed on Thursday.
NEWS
– About 29% of crude production and 17% of natural gas output in the U.S. Gulf of Mexico were shut in response to Hurricane Helene, the U.S. Bureau of Safety and Environmental Enforcement said on Wednesday.
– Singapore jet fuel imports for September arrival are slated to hit a multi-year high, ship tracking data from LSEG and Kpler showed, as China exports rise and lower output in Southeast Asia’s aviation hub forces refiners to buy more.
– Asian stocks bucked the global trend to extend a China-led rally on Thursday, fueled by persistent optimism over the country’s aggressive stimulus package and news that more support could be in the works.
– Saudi Arabia is preparing to abandon its unofficial oil price target of $100 a barrel as it prepares to increase output to win back market share, even if it means lower prices, the Financial Times reported on Thursday, citing people familiar with the matter.
Source: Reuters (Reporting by Trixie Yap; Editing by Tasim Zahid)