Asia’s 10-ppm sulphur gasoil margins fell 16.6% on week, after five consecutive sessions of losses, tracking the overnight fall in northwest Europe and an almost 5% weekly drop in oil futures.

The arbitrage price differential between Asia and northwest Europe has been keeping steady, reflecting that the Asian market is just moving in line with prices there, one Singapore-based trader said.

A lack of regional demand is weighing on trading sentiment as well, with bearish participants continuing to take the chance to offer more material in the open market.

Cash differentials for 10 ppm sulphur gasoil fell for a fourth consecutive session, closing the week at 55 cents a barrel.

Supplies remain ample for jet fuel, as evident from more offers from South Korean refiners, weighing on the aviation fuel’s cracks to around $19 per barrel – almost nearing a one-year low.

The swaps market structure switched to a contango, with prompt prices trading lower than forward prices, reflecting weakness for prompt cargoes.

Regrade was almost steady at a discount of $2.40 a barrel.

SINGAPORE CASH DEALS

– No deals for both gasoil and jet fuel.

INVENTORIES

– Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area slipped for a second week in a row, data from Dutch consultancy Insights Global showed on Thursday. Gasoil stocks fell 2.6% to 2.49 million tonnes, even as demand from inland locations slowed on the week and imports into the region remained strong, Insights Global’s Lars van Wageningen said.

NEWS

– Saudi Aramco has told at least four customers in North Asia they will receive full contract volumes of crude oil in April, several sources with knowledge of the matter said on Friday.

– The European Union struck a political deal on Friday to cut final EU-wide energy consumption 11.7% by 2030, a goal lawmakers said would help fight climate change and curb Europe’s use of Russian fossil fuels.

– Oil fell for a fourth session on Friday, heading for its biggest weekly loss in five weeks on worries about the prospect of steep interest rate hikes in the United States hitting fuel demand.

– Deliveries remain blocked from leaving TotalEnergies’ TTE refineries and depots, a company spokesperson said, as workers extended a strike over planned pension reforms to a fourth day.
Source: Reuters