Asia’s middle distillates markets recorded upbeat spot activity both on window and offscreen, with spot deals resurfacing for both diesel and jet fuel, as jet cash markets fell to one-month lows against a backdrop of June refiner sales activity.
June spot discussions remained in focus, with talks of jet fuel offers from China oil majors emerging – at least one seller was offering an early June shipment cargo via a sales tender that closes on Wednesday.
More South Korea and Taiwan-origin barrels of diesel and jet fuel were also offered via sale tenders.
On the window, trading momentum was at a faster pace but physical discussion levels were overall lower from the previous trading session, reflecting the lower offers.
The 10ppm sulphur gasoil cash differentials dipped to 82 cents per barrel at the market’s close.
Meanwhile, the 10ppm sulphur gasoil refining margins jumped 70 cents from the previous trading session to around $16.3 a barrel.
Jet fuel cash differentials came under pressure, slipping to one-month lows of around 6 cents per barrel, amid a weaker paper market structure and overall lower-priced offers on window.
The regrade discount closed the trading session to around 70 cents a barrel, narrower by 10 cents from the previous session.
SINGAPORE CASH DEALS
– Two gasoil deals, one jet fuel deal
INVENTORIES
– U.S. crude oil stocks rose last week while gasoline and distillate inventories fell, market sources said, citing American Petroleum Institute figures on Tuesday.
– Middle distillates stockpiles held at Fujairah Oil Industry Zone were little changed at around 1.76 million barrels in the week ended May 12, according to industry information service S&P Global Commodity Insights.
REFINERY NEWS
– Nigeria’s Dangote oil refinery has cancelled June maintenance at its 204,000 barrels per day gasoline-making unit as it completed planned works during an unplanned shutdown from April 7 to May 11, according to industry monitor IIR.
NEWS
– The U.S. Treasury Department on Tuesday imposed sanctions on more than 20 companies in a network that it said has long sent Iranian oil to China, days after negotiators from Iran and the United States concluded a fourth round of nuclear talks.
– Oil prices fell on Wednesday as traders eyed a potential jump in U.S. crude inventories, awaiting official weekly data later in the day and OPEC’s monthly oil report.
Source: Reuters