Asia’s middle distillates markets ticked down slightly for the first time in five sessions on Friday, with front month prices starting to take a breather from earlier gains amid some possible profit-taking in the derivatives markets.
ICE gasoil prices also slid 5% from the previous trading session.
More fundamental market changes need to be present for Asian markets to be supported for a prolonged period of time, two trade sources said.
On the spot front, July refiner sales remained in discounted territory, with a handful of northeast Asian refiners continuing their sales endeavours this week.
Meanwhile, traders were looking for a clearer direction in freight markets, given that costs to ship cargoes on most routes out of the Middle East have gone up by around 35% from a week earlier.
The east-west arbitrage price spread (LGOAEFSMc1) was also one of the biggest gainers for the week, with discounts widening to $45 a ton – the highest level since February this year.
Refining margins (GO10SGCKMc1) closed the trading session little changed at around $21 a barrel.
On the trading window, 10ppm sulphur gasoil deals remained brisk – though discussion levels were little changed from the previous session.
The 10ppm sulphur gasoil cash differentials (GO10-SIN-DIF) slipped slightly by 1 cent from the previous trading session to close below $1.3 a barrel, with some buying proving to be supportive.
Jet fuel spot discussions on the trading window were illiquid for the week, though July refiner spot offers were evident through the week.
Regrade (JETREG10SGMc1) held steady at discounts of around $1.7 a barrel.
SINGAPORE CASH DEALS
– One gasoil deal, no jet fuel deal
INVENTORIES
– Gasoil stocks, which include diesel, that are independently held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose on the week, data from Dutch consultancy Insights Global showed on Thursday, amid a drop in inland demand.
NEWS
– Iran is maintaining crude oil supply by loading tankers one at a time and moving floating oil storage much closer to China, two vessel tracking firms told Reuters, as the country seeks to keep a key source of revenue while under attack from Israel.
– Mexican authorities this week discovered a clandestine mini-refinery in the eastern state of Veracruz, along with half a million barrels of crude oil they suspect were stolen from the country’s pipelines.
– Container shipping company Maersk said on Friday it had temporarily paused vessel calls at Israel’s Haifa port amid regional tensions.
Source: Reuters