Asia’s middle distillates markets were supported by renewed buying interest in the region for relatively prompt April deliveries, though window activity remained muted for a second straight session.
More April sales were underway, but buying interest resurfaced from one key import buyer from Vietnam – sparking talks of slightly improving regional demand next month.
Procurement tenders for jet fuel also emerged from Indonesia’s Pertamina, which supported the market slightly.
On the selling front, Northeast Asian refiner sales continue to hover at discounts of $1 per barrel or slightly more for both 10ppm gasoil and jet fuel.
Meanwhile, on the trading window, buying interest resumed at higher price levels and limited lower-priced offers were seen. Cash differentials steadied at 9 cents per barrel.
The east-west arbitrage remained little changed at discounts of around $22 per metric ton.
Refining margins slipped around 30 cents to $13.70 a barrel, giving back some of yesterday’s gains.
Regrade held steady at discounts of nearly $1.1 a barrel.
SINGAPORE CASH DEALS
– No deals for both fuels
INVENTORIES
– U.S. crude oil inventories fell last week as refiners continued to ramp up production, while gasoline and distillate stockpiles also dropped, the Energy Information Administration said on Wednesday.
– Singapore’s middle distillates inventories rebounded back to above 10 million barrels despite rising net exports of both diesel and jet fuel, with some jet fuel volumes heading to Canada, official data showed on Thursday.
NEWS
– Saudi Aramco is in talks to invest in two planned refineries in India as the world’s top oil exporter looks for a stable outlet for its crude in the world’s fastest-growing emerging market, several Indian sources with direct knowledge of the matter said.
– The sustainable aviation fuel (SAF) industry is falling short of its 2030 targets with production not ramping up quickly enough, Boston Consulting Group (BCG) found in a report published on Thursday.
– Oil prices were steady on Thursday as markets assessed new U.S. tariffs, while concerns about global supply kept prices near one-month highs.
Source: Reuters