Asia’s gasoil markets saw thin activity at the start of the week on limited fundamental changes and a persistent buy-sell gap in the open trading session, but a jet fuel deal emerged for the second straight session.
Meanwhile, ICE gasoil futures climbed further by almost 1% as a portion of demand was fuelled by potential supply disruptions from weather issues in the U.S., with some traders expecting refinery shutdowns soon.
Refining margins GO10SGCKMc1 were almost steady, trading slightly above $32.50 a barrel.
Cash premiums GO10-SIN-DIF for spot September lots climbed by 11 cents a barrel from the previous session, reflecting the slightly firmer September swap prices and a lack of selling interest in the market.
Jet fuel refining margins JETSGCKMc1 surged at a quicker pace as some talk of the arbitrage opening to the U.S. West Coast started again.
Furthermore, spot cargoes were available from South Korea, as evidenced from a third sales tender by SK Energy in two weeks. This could be a result of sellers starting discussions to the U.S. West Coast.
Regrade JETREG10SGMc1 remained almost steady to reflect some renewed market confidence after spreads widened the past few weeks.
SINGAPORE CASH DEALS O/AS
– No gasoil deal, one jet fuel deal.
NEWS
– Oil prices rose on Monday as global supply is tightening with lower exports from Saudi Arabia and Russia, offsetting nagging concerns about global demand growth amid high interest rates.
– China’s crude oil imports from top exporter Saudi Arabia are expected to remain depressed through the third quarter, analysts said, after its customs office reported inbound shipments from the kingdom fell to their lowest in 13 months in July.
– China’s fuel oil imports receded in July as refiners resumed using diluted bitumen after customs authorities eased months-long inspections, which replaced some demand for fuel oil, data from the General Administration of Customs showed on Sunday.
– Russia remained China’s largest crude supplier in July, Chinese government data showed on Sunday, even as Russian shipments fall from all-time highs on narrower discounts and rising domestic demand crimps Russian exports.
Source: Reuters (Reporting by Trixie Yap; Editing by Sonia Cheema)