Asia’s middle distillates markets were thinly discussed on the trading window, though more June refiner spot offers popped up and selling activities were brisk.
Taiwan’s Formosa Petchem offers its second jet fuel spot cargo for June loading, while traders were eyeing more offers from China’s exporters in the coming days.
Ample supplies remained a key focus point in the market, against a backdrop of overall higher shipping costs since the start of the week.
The east-west price spread, measured by the difference between front month ICE gasoil prices and Singapore paper swaps, continued to hover at discounts of around $20 per metric ton.
Several trade sources were still expecting more diesel flows to Asia from swing suppliers in India and the Middle East even into early June.
Refining margins barely moved, hovering at $15.6 a barrel – likewise the past three trading sessions.
On the trading window, activity remained muted and 10ppm sulphur cash differentials slipped in line with the paper market structure – closing at premiums of 32 cents per barrel – given the lack of overall deals and discussions.
Regrade held steady at discounts of nearly $1 a barrel.
Jet fuel spot markets recovered slightly with discounts narrowing to around 10 cents per barrel as spot buyers resurfaced on the window.
SINGAPORE CASH DEALS
– No deals for both fuels
INVENTORIES
– Singapore’s middle distillates stocks gained for the fourth straight week to above 10 million barrels despite net exports climbing from earlier, official data showed on Thursday.
– U.S. crude and fuel inventories posted surprise stock builds last week, the Energy Information Administration said on Wednesday, as crude imports hit a six-week high and gasoline, distillate demand slipped.
REFINERY NEWS
– Hunt Refining has expedited and started maintenance and repairs on the fire-damaged coker unit at its 63,000-barrel-per-day petroleum refinery in Tuscaloosa, Alabama last week, IIR Energy said on Wednesday.
NEWS
– Oil prices fell 1% on Thursday after a report that OPEC+ is discussing a production increase for July, stoking concerns that global supply could exceed demand growth.
– OPEC+ members are discussing whether to agree on another large production increase at their meeting on June 1, Bloomberg News reported on Thursday.
– Hungarian oil and gas group MOL and state-owned energy company MVM will jointly charter tankers to ship up to 160,000 metric tons of crude oil a year from Azerbaijan to further diversify energy supply for Hungary and Slovakia, MOL said on Thursday.
Source: Reuters