Asia’s middle distillates markets recorded a slight increase in physical trading momentum, with a deal done on the window for the first time in a week, as May refiner sales were ongoing in the slightly discounted territory.
May selling activities from key South Korean oil majors kick-started in line with earlier expectations, though some were likely under private discussions.
Discussion levels turned to mostly discounts, compared with last month when some deals were at premiums.
Diesel supplies will likely be stuck in the region, and the key price driver will be demand, given a closed arbitrage between Asia and northwest Europe since a week earlier, several traders mentioned.
Imports into Australia were at three month low for now, ship tracking data from Kpler showed, while Vietnam imports were at fresh lows since August 2022.
Refining margins (GO10SGCKMc1) closed the trading session at slightly above $14 a barrel, barely moving the past few days.
On the trading window, firm bids were prevalent from major trading house Trafigura, and spot premiums (GO10-SIN-DIF) gained to 30 cents a barrel.
Regrade (JETREG10SGMc1) discount was little changed from the previous trading session, closing at around 80 cents per barrel.
SINGAPORE CASH DEALS
– One gasoil deal, no jet fuel deal
INVENTORIES
– U.S. crude oil stockpiles rose last week as imports increased and exports fell to their lowest since January, while gasoline and distillate inventories drew down, the Energy Information Administration said on Wednesday.
– Singapore’s middle distillates inventories climbed slightly as net exports rose, though levels were hovered at two-month lows of slightly above 9 million barrels, official data showed on Thursday.
REFINERY NEWS
– Motiva Enterprises began restarting the gasoline-producing fluidic catalytic cracker (FCC) at its 626,000 barrel-per-day (bpd) Port Arthur, Texas refinery on Wednesday, said two people familiar with plant operations.
– Taiwan’s Formosa Petrochemical Corp 6505.TW is operating its refinery at 68% capacity this month, or about 370,000 barrels per day, down from 70% in March due to planned maintenance on one of its refining units, spokesperson KY Lin said on Thursday.
NEWS
– China’s consumer prices fell for the second straight month in March while producer deflation persisted, as caution grows over the economic outlook amid mounting tariff risks.
– U.S. President Donald Trump’s stunning decision to pause most ofthe hefty duties he had just imposed on dozens of countries brought relief for battered global stock markets on Thursday, even as he ratcheted up a trade war with China.
– Many buyers of Venezuelan oil have resumed loading crude onto tankers after a week-long hiatus at the country’s ports after the U.S. applied tariffs that President Donald Trump imposed on importers of the OPEC nation’s oil, according to shipping data and documents.
– U.S. refiners are not planning to make big-ticket investments in processing more domestic crude and less oil from top suppliers Canada and Mexico, industry sources and analysts said, an obstacle to President Trump’s plan to boost oil output.
Source: Reuters