Asia’s gasoil margins and cash premiums both snapped a three-session rally and fell on Tuesday as markets turned cautious on limited demand-supply changes, though activity on the spot sales tenders front was upbeat with two sellers offering September lots.
Refining margins for 10ppm sulphur gasoil declined to $31 a barrel, as paper swaps participants turned cautious given that supply disruptions in the U.S. were ultimately minimal from weather issues the past few days.
ICE gasoil futures also slipped by almost 2% in the afternoon trading session, tracking weakness in crude futures.
Spot cash premiums for 10ppm sulphur gasoil cargoes, discussed in the open market, fell 1 cent from the on thin trading liquidity – though some prompt buying interest still cushioned declines.
Some Chinese refiners emerged for the first time in three weeks with spot September offers for 10ppm sulphur gasoil cargoes, though a third batch of fuel product exports have yet to be announced.
South Korea’s SK Energy also closed a tender for three 10ppm sulphur gasoil cargoes for September loading, which came as a shock to some market participants since they also sold five jet fuel cargoes.
Jet fuel refining margins fell at a quicker pace as more refiners emerged with spot lots for September, with SK Energy selling a total of five cargoes in the past week.
Physical prompt prices of jet fuel traded below 500ppm sulphur gasoil cargoes for the first time in a week, after buying activity ceased in the spot market. Regrade widened back to a discount of $2 a barrel as a result.
SINGAPORE CASH DEALS
– No deals for jet fuel or gasoil
INVENTORIES
– Analysts polled by Reuters estimated stockpiles of gasoline were down by about 1.1 million barrels last week, while distillate stockpiles, which include diesel and heating oil, increased by about 400,000 barrels.
NEWS
– Container shippers are ordering vessels powered by methanol to reduce greenhouse gas emissions, but it will take years for renewable methanol output to meet demand and for costs to fall, industry executives said.
– Iraq’s oil minister Hayan Abdel-Ghani arrived in the Turkish capital Ankara to discuss several issues including the resumption of oil exports through the Ceyhan oil terminal, a source in the minister’s office told Reuters on Monday.
– India’s July crude oil imports from Russia dipped for the first time in nine months, while inbound shipments from Saudi Arabia tumbled to their lowest in 2-1/2 years following OPEC+ cuts, tanker data from trade and industry sources showed.
Source: Reuters (Reporting by Trixie Yap; Editing by Sonia Cheema)