Asia’s 10-ppm sulphur gasoil margins rebounded after four days of losses to $24.20 per barrel, with some buyers back in the open market for early April parcels.
A portion of spot buyers came back into the market for early April loading parcels, as evidenced from the higher bid levels for cash premiums.
Some were betting for better demand fundamentals to emerge given the tightening of supplies for prompt parcels in the West.
A prompt early April cargo was also sold by SK Energy at around flat to a small premium to FOB Singapore quotes via a tender that closed yesterday.
Cash differentials firmed to $1.07 per barrel with a lack of competitively priced offers.
However, some participants were still cautious because of a supply overhang situation in the market, with uncertainty on Chinese export estimates for April looming.
Jet fuel refining margins also recovered in the same uptrend fashion at a quicker pace, with regrade (JETREG10SGMc1) narrowing to a discount of $3.85 per barrel as a result.
SINGAPORE CASH DEALS
– One gasoil deal, no jet fuel deal.
INVENTORIES
– U.S. crude oil stockpiles rose unexpectedly last week to their highest in nearly two years, while gasoline and distillate inventories fell, the Energy Information Administration said on Wednesday. Distillate stockpiles (USOILD=ECI), which include diesel and heating oil, fell by 3.3 million barrels in the week to 116.4 million barrels, versus expectations for a 1.5 million-barrel drop, the data showed.
– Middle distillates stocks at key trading hub Singapore climbed for the third consecutive week, hitting their highest since October 2021, official data from Enterprise Singapore showed on Thursday.
NEWS
– Asian gasoil stocks have risen sharply in recent weeks as regional refiners are stuck exporting to markets east of the Suez, with narrower opportunities to send barrels to Africa flooded with Russian cargoes, traders and analysts said.
– U.S. motorists face a repeat of last summer’s high gasoline prices, analysts warned on Wednesday, with fuel stockpiles heading towards multi-year lows ahead of the peak summer driving season that begins in two months.
– EU countries on Thursday reached a preliminary agreement to reduce greenhouse gas emissions in the maritime sector by increasing the use of renewable fuels on ships.
– Oil prices fell on Thursday following three sessions of gains, after Federal Reserve Chair Jerome Powell highlighted banking sector credit risks for the world’s largest economy, while U.S. crude stocks rose more than expected.
Source: Reuters