Asia’s 10-ppm sulphur gasoil margins were broadly steady at $25.59 per barrel as mixed trading sentiment continued, with some refiners starting their April discussions.
Support in the early afternoon Asian trade came from the uncertainty of production levels in northwest Europe given maintenance season and unplanned production woes, amid lower stockpiles in the U.S.
Gains were cushioned towards the close after sellers started to offer end-March and April loading material, against a backdrop of thin open market trading liquidity.
The Asia-Europe arbitrage spread on paper, known as the EFS, widened day on day to a discount of $67.12 as a result.
Cash differentials (GO10-SIN-DIF) fell to a new low since August 2022 to $0.79 a barrel.
Jet fuel refining margins (JETSGCKMc1) fell slightly to $23.57 per barrel, widening the regrade (JETREG10SGMc1) to a discount of around $2 per barrel.
SINGAPORE CASH DEALS
– No gasoil or jet fuel deal
INVENTORIES
– U.S. crude oil inventories rose for the 10th week in a row, surging to their most since May 2021, but record exports kept the build smaller than in recent weeks, data from the U.S. Energy Information Administration showed on Wednesday. Distillate stockpiles (USOILD=ECI), which include diesel and heating oil, rose by 0.2 million barrels in the week to 122.1 million barrels, its most since January 2022, versus forecasts for a 500,000-barrel drop, the EIA data showed.
– Inventories of middle distillates at key trading hub Singapore fell by around 1 million barrels week-on-week despite a decline in net exports, official data from Enterprise Singapore showed on Thursday.
NEWS
– Exxon Mobil Corp started the new crude distillation unit (CDU) at its 369,024 barrel-per-day (bpd) Beaumont, Texas refinery, people familiar with plant operations said on Wednesday.
– Crude oil processed by Indian refiners reached record levels in January, provisional government data showed on Wednesday, as the country boosted shipments of lucrative Russian barrels that Western countries shunned.
– Refiners’ profit from making gasoline has tripled in Asia this year from October lows amid tight supplies from China and hopes of record Indonesian demand, a trend that is likely to continue into summer driving season, traders and analysts said.
– China’s seaborne imports of Russian oil are set to hit a record this month after refiners took advantage of cheap prices as domestic fuel demand rebounded, but Russia’s plan to cut exports will likely cap buying in coming months.
– Oil slipped on Thursday on worries about rising U.S. crude inventories and concerns about more rate hikes in Europe potentially hitting growth, paring this week’s gains on signs of a strong economic rebound in China.
Source: Reuters