Asia’s middle distillates markets continued to be in limbo, with spot activity discussed in a tight price range, though cash differentials dipped for a second straight week and a jet fuel deal emerged on window for the first time in two months.
The diesel east-west price difference recovered from nearly two-month lows, hovering at nearly $20 per metric ton, as stockpiles in northwest Europe continued its decline.
For July, almost all swing barrels from India and the Middle East were bound for the European import markets, given earlier attractive profits there.
Meanwhile, Saudi Arabia’s exports were likely at 2.9-3 million metric tons for July loading, Kpler and LSEG shiptracking data showed, at least a one-year high. Most volumes loaded from Jubail, Yanbu and Jizan ports.
The 10ppm sulphur gasoil refining margins (GO10SGCKMc1) extended losses for the fourth trading session this week to more than a one-month low of around $18 a barrel.
Meanwhile, on window, a slew of bids surfaced but offers were scant on the trading day for the month, hampering deals but supporting 10ppm sulphur gasoil cash differentials (GO10-SIN-DIF) at $1.59 a barrel.
For jet fuel, one more shipping fixture on the Asia-US west coast route surfaced today, for around 60,000 tons of the fuel loading in early August, shipbroking data showed.
A window deal emerged for the aviation fuel, the first time since end-May.
Separately, for August loading so far, at least five long-range 2 ships have been chartered to load jet fuel from northeast Asia to Europe, traders say.
September regrade (JETREG10SGMc1) narrowed to discounts of $1.8-1.9 a barrel, given the rollover in months.
SINGAPORE CASH DEALS
– No gasoil deals, one jet fuel deal
INVENTORIES
– Gasoil product stocks independently held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell nearly 1.3% on the week to their lowest since December 2023, data from Dutch consultancy Insights Global showed on Thursday.
REFINERY NEWS
– PBF Energy PBF said on Thursday its Martinez refinery was partially operational and expected to run at a reduced capacity until repairs were completed, with a full restart of the remaining units planned by the end of 2025.
NEWS
– U.S. refiner Phillips 66 PSX was ordered to pay biofuel maker Propel Fuels $800 million in damages for stealing trade secrets to build up its renewable-fuel capabilities, according to a California state court document.
– Indian state refiners have stopped buying Russian oil in the past week as discounts narrowed this month and U.S. President Donald Trump warned against purchasing oil from Moscow, industry sources said.
– Oil prices were little changed on Friday and heading for a weekly gain, as investors weighed the impact of further tariffs and sanctions by U.S. President Donald Trump.
Source: Reuters