Asia’s middle distillates markets continued to see February spot sale activities from northeast Asian refiners against a backdrop of firmer paper swaps – with margins starting the trading week at a six-month high.
More spot sales for February cargoes emerged from a handful of northeast Asian refiners, in line with expectations, as they sought to clear their regular requirements.
SK Energy was offering more 10ppm sulphur gasoil, while China’s WEPEC was offering jet fuel.
Floating sale prices linked to free on board (FOB Singapore) quotes, however, remained in the discounted territory, given the gains in fixed prices the last few trading sessions.
On the jet fuel front, arbitrage enquiries on the Asia and U.S. west coast route emerged again despite a narrower price spread between the two regions.
Refining margins (GO10SGCKMc1) started the week at a six-month high of nearly $18 a barrel.
Cash differentials (GO10-SIN-DIF) closed the trading session 11 cents firmer at $1.26 a barrel, reflecting a higher-priced deal for early February and overall a steeper paper market backwardation.
Regrade (JETREG10SGMc1) widened to above $2 a barrel discounts, giving back earlier sessions’ gains as jet fuel markets were slightly weaker compared with gasoil.
SINGAPORE CASH DEALS
– Two gasoil deals, no jet fuel deals
REFINERY NEWS
– Marathon Petroleum Corp MPC.N began restarting the resid hydrotreater (RHU) at its 631,000 barrel-per-day (bpd) Galveston Bay Refinery in Texas City, Texas on Friday, people familiar with plant operations said.
NEWS
– Oil prices fell on Monday as expectations of U.S. President-elect Donald Trump relaxing curbs on Russia’s energy sector in exchange for a deal to end the Ukraine war offset concern of supply disruption from harsher sanctions.
– China’s crude oil imports from top supplier Russia were up 1% in 2024 to a record high versus 2023, while purchases from Saudi Arabia dropped 9%, data showed on Monday, as refiners chased discounted Russian supplies to cope with weakened margins.
Source: Reuters