Asia’s middle distillates markets stayed upbeat on the trading window, with physical deals done for a third straight trading session and March refiner sale discussions in the discounted territory.
Discussions for Taiwan-origin March barrels were at small discounts of nearly 20 cents per barrel, multiple trade sources said.
On the jet fuel front, offers were made from Nigeria’s Dangote refinery for first-half March loading, with buyers having the options to either buy one medium range sized or long ranged size vessel cargo.
Traders were expecting some northeast Asia-origin jet fuel offers from refiners to emerge soon, though talks were scant.
The arbitrage between Asia and the U.S. west coast proved to still be profitable for some traders, with at least two cargoes under negotiations for export there.
Meanwhile, the 10ppm sulphur gasoil refining margins (GO10SGCKMc1) closed the trading session at a three-week high – reflecting the strength in paper markets before the expiration of prompt month ICE gasoil futures.
In cash markets, spot differentials (GO10-SIN-DIF) regained ground back to premiums of around 12 cents a barrel, with March buying interest robust on the open trading window.
Regrade (JETREG10SGMc1) held steady at nearly discounts of around $1 a barrel.
SINGAPORE CASH DEALS
– One gasoil deal, no jet fuel deal
INVENTORIES
– U.S. crude oil stocks rose last week while fuel inventories fell, market sources said, citing American Petroleum Institute figures on Tuesday.
– Distillates stocks held at Fujairah Oil Industry Zone slipped for a second straight week to 1.559 million barrels in the week ended February 10, according to industry information service S&P Global Commodity Insights.
NEWS
– U.S. oil production is poised to set a larger record this year than prior estimates, the U.S. Energy Information Administration said on Tuesday in its Short-Term Energy Outlook report, but it maintained its estimate for demand growth.
– Decisions made by oil producer group OPEC take a long-term view of the global markets and are aimed at providing price stability, Secretary General Haitham Al Ghais said at the India Energy Week conference on Tuesday.
Source: Reuters