Asia’s distillates markets were thinly discussed on the trading window though margins declined for a fifth straight session on Wednesday, against a backdrop of mixed outlooks for March fundamentals.
Meanwhile, some uncertainty remained on swing barrels heading over to Europe in the next month, some analysts say, which could result in a knock-off impact on Asian supply balances.
Sentiment was mixed among trading participants, with some expecting March fundamentals to be slightly better than February partially due to lower supplies from scheduled refinery maintenance.
Refining margins (GO10SGCKMc1) fell for the fifth straight session to close below $16 a barrel, as a reflection of the overall weak near-term fundamentals.
At the market’s close, cash differentials (GO10-SIN-DIF) declined slightly to 33 cents per barrel amid a narrower backwardation in paper markets. Some buying interest buoyed the premiums overall.
Regrade (JETREG10SGMc1) narrowed slightly again to a discount of 35 cents per barrel, reflecting the stronger market expectations for jet fuel in comparison with 10ppm sulphur gasoil.
SINGAPORE CASH DEALS
– No deals for both fuels
INVENTORIES
– U.S. crude oil and gasoline stockpiles were expected to have risen last week, while distillate inventories likely fell, a preliminary Reuters poll showed on Tuesday. [EIA/S}
– Middle distillates inventories held at Fujairah Oil Industry Zone climbed back to 2.333 million barrels in the week of February 17, according to industry information service S&P Global Commodity Insights.
NEWS
– Russia said oil flows through the Caspian Pipeline Consortium (CPC), a major route for supplying Kazakhstan and exporting to the global market, were reduced by 30-40% on Tuesday after a Ukrainian drone attack on a pumping station.
– Layoffs at Lyondell Basell Industries’ LYB shuttered Houston refinery will begin in mid-April, the company stated in a letter sent to the United Steelworkers union (USW) on Monday.
– Dutch tank storage company Vopak VPK reported 2024 core earnings above its previously guided range on Wednesday, driven by strong demand for infrastructure services across most of its business units.
– London-listed global commodity trader and miner Glencore GLEN traded more oil in 2024 than in the previous year, preliminary results showed on Wednesday, but its earnings from energy products fell.
– Chinese refiners have stepped up purchases of Brazilian and West African crude as they reorganise sourcing around sanctions and tariff disruptions, and after prices of Middle Eastern grades surged.
Source: Reuters