Asia’s middle distillates markets recorded brisk trade on Wednesday, with more discussions for October gasoil cargoes taking place and jet fuel arbitrage activity to the West emerging.
However, cracks for both products softened amid weaker overnight ICE futures.
A handful of regional buyers and sellers started discussions for October 10/50 ppm sulphur gasoil cargoes in spot tenders.
Cash differentials for 10 ppm sulphur gasoil were firmer because of some strong buying interest, rising to slightly above $2 a barrel.
The buying interest limited price decreases following an overnight dip in ICE gasoil futures, which were mostly attributed to profit-taking given the lower open interest volumes.
There were enquiries for ships to deliver jet fuel cargoes from Asia to the West, one source said, supporting overall market fundamentals.
Both refining margins for 10 ppm sulphur gasoil and jet fuel declined by around 2% from the previous session.
Regrade was mostly steady reflecting the continuous strength for both fuel markets.
SINGAPORE CASH DEALS O/AS
– One gasoil deal, no jet fuel deal.
INVENTORIES
– Crude stocks rose by about 1.2 million barrels in the week ended Sept. 8, according to the sources quoting American Petroleum Institute figures, who spoke on condition of anonymity. Gasoline inventories rose by about 4.2 million barrels, while distillate inventories rose by about 2.6 million barrels.
– Middle distillates stocks at Fujairah Oil Industry Zone rose to around 1.8 million barrels for the week ended Sept. 11, according to industry information service S&P Global Commodity Insights.
REFINERY NEWS REF/OUT
– Vietnam’s Binh Son Refining and Petrochemical will shut down its 130,000-barrel-per-day Dung Quat refinery in March and April next year for major maintenance, a company source said on Wednesday.
NEWS
– Russian oil production is seen declining by 1.5% to 527 million metric tons (10.54 million barrels per day) this year from 535 million in 2022, newspaper Izvestia reported on Wednesday, citing an interview with Energy Minister Nikolai Shulginov.
– Oman’s new Duqm oil refinery shipped out its first diesel cargo on Tuesday amid trial runs at the complex, the latest facility in the Middle East to commence operations, according to several trade sources and shiptracking data.
Source: Reuters (Reporting by Trixie Yap; Editing by Varun H K)