Asia’s 10ppm sulphur gasoil cracking margins GO10SGCKMc1 fell for the second straight session to around $30 a barrel as the markets weighed mixed regional outlooks and expectations of more selling interest to resurface soon for November spot cargoes against limited supplies in the West.
Regional trading activity started to pick up, with some refiners emerging to start their November spot sales via open market tenders.
Likewise, spot cash premiums GO10-SIN-DIF slid by 16% day on day, reflecting the narrower market backwardation and stronger spot selling interest for second-half October lots.
Jet fuel refining margins JETSGCKMc1 weakened at a quicker pace, with regrade JETREG10SGMc1 widening to around a discount of $3 a barrel.
Discussions remained minimal for the aviation fuel and that limited overall price fluctuations.
SINGAPORE CASH DEALS O/AS
– Two gasoil deals, no jet fuel deals.
INVENTORIES
-Analysts in a Reuters poll estimated stockpiles of gasoline USOILG=ECI were down by about 200,000 barrels last week, while distillate stockpiles USOILD=ECI, which include diesel and heating oil, were seen decreasing by about 1.2 million barrels.
NEWS
– Top oil exporter Saudi Arabia may raise the price for its flagship Arab Light crude to Asia for a fifth straight month in November, underpinned by its prolonged voluntary output cut and resilient oil demand in the region.
– Japan’s biggest refiner, Eneos Corp, restarted the 141,000 barrels-per-day (bpd) crude distillation unit (CDU) at its Sakai refinery in western Japan on Sept. 19 after an unscheduled shutdown on Sept. 4, a company spokesperson said on Tuesday.
Source: Reuters (Reporting by Trixie Yap; Editing by Shweta Agarwal)