Asia’s middle distillates markets continued to see a lack of deals on the physical trading window, though April spot sales remained upbeat on the refiners’ end and jet fuel arbitrage windows to the U.S. stayed open.
More April offers emerged from northeast Asia-based refiners for both gasoil and jet fuel, with discussions underway.
Expectations that the market could be seeing wider discounts in the near term, given the late loading timings for recent offers and overall cautious market sentiment.
Refining margins gained for the second straight session to around $13.7 a barrel, reflecting gains in paper markets during the afternoon trading session.
Jet fuel-wise, markets were still looking at an open arbitrage price spread between Asia and the U.S. west coast markets, which were supportive to a narrower regrade spread discount of around 85 cents a barrel.
The 10ppm cash differentials declined further, reflecting lower-priced offers and again a lack of bids for the third straight trading session on window.
SINGAPORE CASH DEALS
– No deals for both fuels
INVENTORIES
– Singapore’s middle distillates stocks declined to a near one-month low as net exports of diesel/gasoil rose, even as it turned a net importer of jet fuel, data showed on Thursday.
– U.S. crude stocks rose more than expected, while gasoline and distillate inventories fell last week, the Energy Information Administration said on Wednesday.
REFINERY NEWS
– A small fire broke out at Phillips 66’s 139,000 barrel-per-day refinery in Los Angeles on Tuesday evening, the company said.
NEWS
– Oil prices rose on Thursday, boosted by a strong outlook for demand in the United States after fuel inventories fell more than expected, and a weaker U.S. dollar.
– Asia’s sour crude demand is set to rebound from late in the second quarter as refiners return from maintenance and Exxon Mobil completes a Singapore refinery upgrade that is poised to increase its heavy oil use, traders and analysts said.
– U.S. and Canadian biofuel companies are throttling back production to limit losses amid uncertainty over U.S. President Donald Trump’s approach to green fuel subsidies and the potential for a worsening trade war.
Source: Reuters