Asia Distillates-Tepid window activity persists; east-west spreads hold firm

Reuters
08/27
Asia Distillates-Tepid window activity persists; east-west spreads hold firm

SINGAPORE, Aug 27 (Reuters) - Asia's diesel markets were thinly traded on the window for a third consecutive session, with September discussions slowing slightly on Wednesday, while ICE gasoil futures extended declines.

The east-west price spreads are favoring west markets in the short run, some traders said, with values hovering at slightly more than $40 per metric ton discounts in the past three trading sessions.

Trading activity was lacklustre in the window, with a lack of deals plaguing the market again.

The 10ppm sulphur gasoil cash differentials GO10-SIN-DIF barely moved at 63 cents per barrel, amid a buy-sell gap.

Meanwhile, refining margins GO10SGCKMc1 slipped again to around $16.3 a barrel.

Shipping enquiries resurfaced for September jet fuel cargoes on the Asia-U.S. west coast route, with the arbitrage price spreads slightly wider since the start of this week.

Regrade JETREG10SGMc1 held steady at discounts of around $1.65 a barrel.

SINGAPORE CASH DEALS O/AS

- No deals for gasoil and jet fuel

INVENTORIES

- U.S. crude, gasoline and distillate inventories fell last week, market sources said, citing American Petroleum Institute figures on Tuesday. API/S

- Middle distillates stockpiles gained slightly to 1.886 million barrels for the week ended August 25, according to industry information service S&P Global Commodity Insights. FUJAIRAH/

REFINERY NEWS REF/OUT

- Top U.S. energy producer Exxon Mobil XOM.N said on Tuesday it has made a final investment decision to reconfigure its Baytown, Texas, complex to increase production of diesel and base stocks.

NEWS

- Oil prices steadied on Wednesday, after falling in the previous session, as investors watched for fresh developments in the Ukraine war and weighed an industry report that showed a drop in U.S. crude inventories. O/R

- India saved billions of dollars by stepping up imports of discounted Russian oil in the wake of the war in Ukraine, but punitive tariffs imposed by the U.S. that came into effect on Wednesday will quickly undo the gains, with no easy solutions in sight.

- Kazakhstan is holding talks to resume oil transit via the Baku-Tbilisi-Ceyhan pipeline, Russian state news agency TASS reported on Wednesday, citing the Central Asian country's energy ministry.

PRICES

MIDDLE DISTILLATES

CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.5%

79.62

-1.25

80.86

GO-SIN

GO 0.5 Diff

-5.38

-0.01

-5.37

GO-SIN-DIF

Spot Gas Oil 0.25%

83.99

-1.24

85.23

GO25-SIN

GO 0.25 Diff

-1.01

-0.01

-1.00

GO25-SIN-DIF

Spot Gas Oil 0.05%

84.99

-1.25

86.23

GO005-SIN

GO 0.05 Diff

-0.01

-0.01

0.00

GO005-SIN-DIF

Spot Gas Oil 0.001%

85.62

-1.24

86.86

GO10-SIN

GO 0.001 Diff

0.63

0.00

0.63

GO10-SIN-DIF

Spot Jet/Kero

84.03

-1.33

85.36

JET-SIN

Jet/Kero Diff

0.66

-0.05

0.71

JET-SIN-DIF

For a list of derivatives prices, including margins, please double click the RICs below.

Brent M1

BRENTSGMc1

Gasoil M1

GOSGSWMc1

Gasoil M1/M2

GOSGSPDMc1

Gasoil M2

GOSGSWMc2

Regrade M1

JETREGSGMc1

Regrade M2

JETREGSGMc2

Jet M1

JETSGSWMc1

Jet M1/M2

JETSGSPDMc1

Jet M2

JETSGSWMc2

Gasoil 500ppm-Dubai Cracks M1

GOSGCKMc1

Gasoil 500ppm-Dubai Cracks M2

GOSGCKMc2

Jet Cracks M1

JETSGCKMc1

Jet Cracks M2

JETSGCKMc2

East-West M1

LGOAEFSMc1

East-West M2

LGOAEFSMc2

LGO M1

LGOAMc1

LGO M1/M2

LGOASPDMc1

LGO M2

LGOAMc2

Crack LGO-Brent M1

LGOACKMc1

Crack LGO-Brent M2

LGOACKMc2

(Reporting by Trixie Yap; Editing by Shilpi Majumdar)

((trixie.yap@thomsonreuters.com;))

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