Asia’s 10 ppm sulphur gasoil margins slipped by 7.3% at the start of the week on higher-than-expected export supply estimates from China for February loading amid weaker oil futures.

Regional industry sources have pegged February-loading gasoil export volumes from China stable-to-firm from January estimates at 1.9 million tonnes to 2.35 million tonnes.

Refining margins (GO10SGCKMc1) for 10 ppm sulphur gasoil closed the trading session at $33.39 a barrel.

Cash differentials (GO10-SIN-DIF) for 10 ppm sulphur gasoil however firmed on some strong buying interest for mid-February parcels.

Regrade (JETREG10SGMc1) went back to a discount of 30 cents a barrel from a premium on the back of a sell-off, with some participants believing the uptrend to be overdone a week earlier.

Furthermore, China’s February-loading exports of the aviation fuel were estimated at around 1.4 million tonnes – almost steady from January.

Decreases in jet fuel refining margins (JETSGCKMc1) were cushioned by some opportunistic demand from the U.S. amid an opened export arbitrage window for Asian cargoes. At least two cargoes from South Korea were sold to the U.S. for February loading, according to industry sources.

SINGAPORE CASH DEALS

– Two gasoil deals, no jet fuel deal.

TENDERS

– South Korean refiners sell end-Feb jet fuel at premiums

– India’s IOC offers Feb high-speed diesel, light cycle oil

NEWS

– Oil fell on Monday, giving up earlier gains, as looming interest rate hikes by major central banks and signs of strong Russian exports offset rising Middle East tension over a drone attack in Iran and hopes of higher Chinese demand.
Source: Reuters