Asia’s middle distillates markets were discussed in a tight range as spot liquidity on the trading window dwindled and June spot sales turned limited in the late week.
Sparse spot discussions for remaining June cargoes were prevalent in the market in most of this week, with deal levels almost similar from a week earlier.
Mildly tighter front-month market fundamentals, owing to unexpected supply disruptions and squeezed export margins deterring spot sales, provided some market support late week.
Traders were waiting for July spot discussions to start a week later, though availability should remain sufficient in the near-term.
Concerns about slower demand in some regions as the monsoon seasons start surfaced, though traders were still monitoring the knock on effects overall.
The 10ppm sulphur gasoil refining margins (GO10SGCKMc1) slipped back below $16 a barrel, closing almost unchanged week-on-week at around $15.9 a barrel.
Cash differentials (GO10-SIN-DIF) gained slightly to close at 33 cents per barrel at the end of the session, with week-on-week increments at 11 cents.
Regrade (JETREG10SGMc1) widened to discounts of nearly $1.3 a barrel, mostly due to weakness in jet fuel markets.
SINGAPORE CASH DEALS
– No deals for both fuels
INVENTORIES
– U.S. crude and fuel inventories all fell last week, while crude imports from Nigeria hit their highest level in nearly six years, the Energy Information Administration said on Thursday.
REFINERY NEWS
– The 650,000-barrel-per-day (bpd) Dangote oil refinery in Nigeria is expected to operate its gasoline-making unit at reduced rates through October after a string of issues in recent months, industry monitor IIR Energy told Reuters.
NEWS
– India’s diesel exports to Southeast Asia for May are expected to be the highest in at least four years, according to shiptrackers and three trade sources, as traders eyed higher profits in Asia and as higher freight costs deterred shipments to Europe.
– The White House is weighing a plan to clear a record backlog of requests from small refineries for exemptions from U.S. biofuel laws, which could include approving many current applications and requesting industry input to deal with older ones, according to three sources familiar with the plans.
– Oil prices were stable on Friday, but on track for a second consecutive weekly decline, pressured by expectations of another OPEC+ output hike and uncertainty about U.S. tariffs after the latest legal twist kept them in place.
Source: Reuters