Asia’s middle distillates physical markets were thinly discussed on the spot trading window on Monday, with refiner sales picking up the pace slightly.

August spot discussions remained in full swing as the usual refiners proceeded with the sale tenders, with deal levels remaining mostly in the discounted territory.

On the trading window, cash differentials gained to $1.28 a barrel, in line with the steeper paper market backwardation despite a lack of concrete discussions.

The 10ppm sulphur gasoil refining margins climbed back to around $20.9 a barrel, kickstarting the week on a firmer note.

For jet fuel, the arbitrage spread between Asia and the U.S. west coast remained sufficiently open for traders to consider engaging in discussions, with Asian prices still under pressure for ample supplies.

SINGAPORE CASH DEALS

– One 500ppm sulphur gasoil deal, no jet fuel deal

REFINERY NEWS

– Marathon Petroleum plans to restart a diesel-producing Ultracracker over the weekend at its 631,000 barrel-per-day Galveston Bay Refinery in Texas City, Texas over the weekend, people familiar with plant operations said on Friday.

NEWS

– China’s crude oil imports rebounded in June and reached the highest daily rate since August in 2023, data showed on Monday, after refineries increased operations and imports rose from Saudi Arabia and Iran, according to consultancies.

– European Union envoys are on the verge of agreeing an 18th package of sanctions against Russia for its full-scale invasion of Ukraine that would include a lower price cap on Russian oil, four EU sources said after a Sunday meeting.

– The start-up of an offshore well used zinc contamination in Mars crude, Chevron said on Friday, leading to tightening crude oil supply in the key Gulf Coast refining hub and the government releasing barrels from its emergency stockpile.
Source: Reuters