Asia’s 10 ppm sulphur gasoil margins neared $20 a barrel – close to a four-month high – supported by gains in the ICE gasoil futures market and overnight gains in the northwest Europe refining margins.
Spot premiums however, gave back two days’ worth of gains and fell to $1.13 a barrel, reflecting the mixed market forecasts for August as sellers started to emerge, including one major Chinese refiner because of positive margins compared with domestic sales.
At least two Western trading houses were readily offering early August parcels as well.
A portion of the market remained bullish on tightening supplies, which two analysts attributed to lower than usual stocks in July at commercial shoretanks such as Singapore.
This is in addition to northwest Europe stockpiles being at more than a seven-month low since a week earlier.
Jet fuel refining margins likewise gained to slightly above $18 a barrel, but at a slower pace in comparison as concerns about demand from the air cargo market demand superseding air travel demand weighed, Refinitiv Oil Research said.
Regrade widened to a discount of $1.70 a barrel for August as a result.
SINGAPORE CASH DEALS
– Two gasoil deals, no jet fuel deal
INVENTORIES
– Middle distillates inventories at key trading hub Singapore reversed the earlier week’s drop and gained on slower jet fuel and kerosene outflows, even though gasoil exports have been more brisk week on week, official data showed on Thursday.
– U.S. crude stocks rose much more than expected last week as the United States posted higher net crude imports, the Energy Information Administration said on Wednesday, while gasoline inventories were largely flat during the Fourth of July holiday week when analysts had expected a big draw.
NEWS
– China’s crude oil imports in June jumped 45.3% on the year, customs data showed on Thursday, with refiners building up inventories despite tepid domestic demand.
– Russian Urals oil jumped $2-$3 above the $60 per barrel Western price cap on Thursday, boosted by strengthening in international benchmark Brent and additional export cuts announced by Russia in August, Reuters calculations based on traders’ data showed.
– Saudi Arabia imported record volumes of discounted Russian fuel oil in June, a near 10-fold annual increase to meet summer power generation demand and maintain crude exports despite OPEC+ production cuts, according to traders, analysts and Kpler data.
Source: Reuters (Reporting by Trixie Yap)