Asia’s middle ditillates spot discussions were upbeat in the trading window, although cash differentials slipped, while some June refiner sales proceeded further at similar levels from last week.

Most June spot refiner sales were still being done at discounts of 30-50 cents per barrel, similar levels to late last week, multiple trade sources said.

Talks of more May-loading jet fuel from Asia heading over to the U.S. west coast were prevalent, given the earlier open arbitrage window, two shipping sources said.

On the trading window, deals were brisk but mostly at lower premiums from last week, weighing on spot cash differentials overall. The 10ppm sulphur gasoil cash differential was down to around 47 cents per barrel at the market’s close.

Meanwhile, refining margins dipped to around $16 a barrel amid a weaker front month paper market structure.

Regrade for June widened slightly to discounts of nearly $1 per barrel.

SINGAPORE CASH DEALS

– Two gasoil deals, no jet fuel deal

REFINERY NEWS

– Malaysia’s Pengerang Refining Company (Prefchem) has restarted one of its two residue fluid catalytic cracking (RFCC) units in the past week after shutting it for repairs early this year, four sources familiar with the matter said.

NEWS

– Goldman Sachs said on Sunday it is retaining a cautious outlook on oil prices, as pressure from likely elevated Iranian supply and higher OECD commercial inventories will offset support from stronger global GDP growth.

– China’s exports of aviation fuel rose to a 13-month high of 1.89 million metric tons in April, customs data showed on Sunday.

– Oil slipped on Monday, weighed down by Moody’s downgrade of the U.S. sovereign credit rating and official data that showed slowing growth in China’s industrial output and retail sales.
Source: Reuters