Asia’s middle distillates markets continued to see upbeat trading window activity with strong supply-demand fundamentals expected until November at least, though November offers from refiners have yet to emerge.
Talks of more cargoes from the Middle East and India heading into Asia for remaining of October were prevalent, with several traders saying that the arbitrage window to east instead of west is seemingly more profitable for sellers.
On the refiner spot sales front, activity remained muted, though expectations are there for offers to emerge by this week for November loading cargoes.
Refining margins GO10SGCKMc1 crept up to one-month highs, after gains in the past four trading sessions, as a reflection of the strength in prompt paper markets performance.
Spot cash premiums GO10-SIN-DIF continued to hover at slightly more than seven-month highs of 31 cents a barrel, buoyed by strong buying interest for prompt loading cargoes in the open trading window, with Vitol buying two lots at higher premiums from the previous trading session.
The deeper backwardated price structure for derivative markets also supported the higher premiums for prompt cargoes.
On the jet fuel front, selling interest from several northeast Asian refiners did not emerge as well – likewise gasoil – and contributed to thin spot activity.
Regrade JETREG10SGMc1 widened back to 35 cents discount a barrel as jet fuel swap prices regained some ground from the previous trading session.
SINGAPORE CASH DEALS O/AS
– Two gasoil deals, no jet fuel deals.
INVENTORIES
– U.S. crude oil stocks rose by nearly 11 million barrels last week, while fuel stockpiles fell, according to market sources, citing American Petroleum Institute figures on Tuesday.
– Middle distillates stocks at Fujairah Oil Industry Zone fell slightly to 2.142 million barrels in the week ended Oct. 7, according to industry information service S&P Global Commodity Insights.
NEWS
– Marine fuel suppliers at Singapore, world’s largest bunker hub, will be required to provide digital bunkering services and issue electronic bunker delivery notes starting April 1, 2025, Amy Khor, Singapore’s senior minister of state for transport, said at the SIBCON 2024 conference.
– Russian oil companies have held talks with the government on whether firms that do not produce diesel should be banned from exporting it because of concern the refiners may be losing subsidies, Interfax news agency reported on Tuesday.
– At least one oil and gas platform in the U.S. Gulf of Mexico was shut on Monday and Florida ports imposed restrictions on vessel navigation as Hurricane Milton rapidly intensified.
– Two Indian state refiners have bought 2 million barrels of Venezuelan crude from trading house Vitol for November delivery, trade sources said, as shipments to what previously was Venezuela’s second largest oil market continue to grow.
– China’s finance ministry will detail plans on fiscal stimulus to boost the economy at a highly expected news conference on Saturday, the government’s main information office said on Wednesday, signalling more forceful policies to revive growth.
– Russia plans to take offline 4.0 million metric tons of refining capacity in October, an increase of 67% from an earlier plan, to carry out maintenance, according to Reuters calculations based on data from industry sources.
Source: Reuters