Asia’s gasoil cash differentials hit their lowest in seven weeks on Monday, as ample supply weighed on the market.
The 10ppm sulphur gasoil differential (GO10-SIN-DIF) was pegged at 20 cents per barrel, with prompt market structure hovering near parity.
High arrivals from India have boosted supplies into Southeast Asia, while regional suppliers were also active in offering cargoes for June.
Gasoil refining margins (GO10SGCKMc1) held broadly stable from the previous session, closing at about $15.75 a barrel on Monday.
Jet fuel is also underpinned by weakness, with the contango spread widening between the prompt months while cash differentials dipped further.
Meanwhile, regrade (JETREG10SGMc1) closed at a discount of about $1 per barrel, widening from the previous week.
SINGAPORE CASH DEALS
– No deals for both fuels.
NEWS
– Saudi state oil giant Aramco is exploring potential asset sales to free up funds, two people with knowledge of the matter said, as it pursues an international expansion and weathers lower crude prices.
– Top U.S. oil producer Exxon Mobil and Hess will meet face-to-face on Monday in a court hearing to determine the fate of Chevron’s $53 billion deal to buy Hess and with it a prized stake in Guyana’s prolific oilfields.
– Egypt is in talks with energy firms and trading houses to buy 40-60 cargoes of liquefied natural gas amid a worsening energy crunch ahead of peak summer demand, three sources aware of the matter told Reuters.
Source: Reuters