Asia’s spot premiums for 10 ppm sulphur gasoil rebounded to 49 cents a barrel, as buyers took cues from firmer futures prices to resume their purchases in the open market for June parcels, and sellers remained absent.
This was against a backdrop of steady cracks in northwest Europe amid one unexpected refinery unit outage.
Likewise, 10 ppm sulphur gasoil refining margins firmed to $15.37 a barrel.
Healthy arbitrage economics to the U.S. West Coast continued to support jet fuel refining margins, with 60,000 tonnes of more jet fuel loading in mid-June from Yeosu confirmed to be heading to California.
The regrade spread narrowed for the third consecutive session this week to a discount of 50 cents a barrel, reflecting the strength in jet fuel prices and cracks compared with gasoil.
The open market saw a lack of bids and offers, with some participants speculating that most cargoes were under private negotiations for now.
SINGAPORE CASH DEALS
– No gasoil and jet fuel deal.
INVENTORIES
– U.S. crude oil inventories fell last week, while fuel inventories rose, according to market sources citing American Petroleum Institute figures on Tuesday. Crude stocks fell by about 1.7 million barrels in the week ended June 2, according to the sources, who spoke on condition of anonymity. Gasoline inventories rose by about 2.4 million, while distillate inventories gained by about 4.5 million.
– Middle distillate stockpiles at Fujairah Oil Industry Zone were up about 10.9% at 4.355 million barrels for the week ended June 5, according to industry information service S&P Global Commodity Insights.
NEWS
– China’s crude oil imports in May rose to the third-highest monthly level on record, customs data showed on Wednesday, as refiners built inventories and stepped up operations after maintenance in April. Refined fuel exports rose 49.5% to 4.89 million tonnes from May last year.
– U.S. distillate exports to Europe surged in May to the highest level in more than three years due to bans of Russian product there, though Russian imports displaced U.S. fuel in Brazil, according to traders and shipping data.
– Australia’s Woodside Energy WDS has started marketing a new African crude oil from Senegal’s first oil project, where the company aims to start producing by the end of this year, a senior executive said.
– Shell SHEL has halted a unit at its Pernis oil refinery (C}RO7309414176) in Rotterdam because of an unspecified leak, the company said in a statement on Tuesday.
Source: Reuters