Asia’s middle distillates markets were mostly upbeat on the jet fuel front with some ongoing activity on the window and January offers from refiners emerging, though gasoil discussions were minimal in comparison.
Refiner spot sales were mostly from China again as a handful still sought to offload their January cargoes following the export quota announcement late last week.
Discussion levels have mostly flipped into discounts for jet fuel as well, likewise 10ppm sulphur gasoil cargoes earlier for January, given the expectations of ample China-origin barrels available next month.
More sales are expected in the coming days, with February discussions also likely to start a week later from the remaining refiners.
Refining margins (GO10SGCKMc1) closed the trading session at almost $1 higher, around $16 a barrel, though paper trading liquidity remained muted.
Spot premiums for 10ppm sulphur gasoil were little changed from the previous trading session, at a premium of around 87 cents per barrel, with a lack of discussions on the trading window. (GO10-SIN-DIF)
Jet fuel deals, however, were still ongoing, though cash premiums ended up being little changed given the narrower paper market backwardation and higher-priced deals. (JET-SIN-DIF)
Meanwhile, regrade (JETREG10SGMc1) was little changed, at a discount of slightly more than $1.40 a barrel.
SINGAPORE CASH DEALS
– No gasoil deal, one jet fuel deal
INVENTORIES
– Refined oil product stocks independently held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by nearly 3% on the week to their highest since May 2023, data from Dutch consultancy Insights Global showed.
– U.S. crude stocks drew down more than expected on strong refinery runs, while distillate inventories fell thanks to higher truck traffic during the holiday season and cold weather, data from the Energy Information Administration showed on Friday.
REFINERY NEWS
– BP’s BP.L 435,000-barrel-per-day (bpd) Whiting, Indiana, refinery was operating normally following a leak from a pipeline that transports liquid material, the company said.
OTHER NEWS
– China has issued at least 152.49 million metric tons of crude oil import quotas to independent refiners in a second batch for 2025 so far, several trade sources said on Monday.
– Oil prices edged down on Monday in thin holiday trade ahead of the year-end as traders awaited more Chinese and U.S. economic data later this week to assess growth in the world’s two largest oil consumers.
– China’s factory activity likely expanded for a third straight month in December, offering a glimmer of optimism to officials trying to steady the world’s No. 2 economy as they brace for further U.S. trade tariffs under a second Trump administration.
Source: Reuters