SINGAPORE, Feb 26 (Reuters) - Asia's diesel markets softened further ahead of the month-end closing period, as traders weighed larger-than-expected March supply against pockets of demand.
One regional buyer is expected to step up purchases for March delivery soon, though further details could not be confirmed.
Meanwhile, buying interest from the West has remained steady since the start of the year, with barrels, including gasoline, heading to some parts of Latin America this month as well.
East-west price spreads held firm at discounts of slightly more than $50 per metric ton, tracking faster gains in ICE gasoil futures.
Refining margins GO10SGCKMc1 steadied at around $22.3 a barrel, barely moving from the previous session.
Cash differentials GO10-SIN-DIF fell to a three-week low, ending the session at premiums of 87 cents per barrel.
For jet fuel, China's spot sale activities stayed brisk for March, with at least two more exporters still looking to offload cargoes.
Meanwhile, the Asia-U.S. West Coast price spreads were also supportive, with Asian paper markets at least $13 a barrel above U.S. West Coast paper markets.
However, discussions for some March spot cargoes remained in discounted territory.
Regrade JETREG10SGMc1 returned to slight discounts of 20-30 cents per barrel.
SINGAPORE CASH DEALS O/AS
- No deal for gasoil or jet fuel
INVENTORIES
- U.S. crude inventories rose by the most last week since February 2023, as refinery utilization slowed and imports increased, the Energy Information Administration said on Wednesday. EIA/S
- Singapore's middle distillate inventories declined for a second straight week, tracking the rise in net exports of diesel and jet fuel, official government data showed on Thursday. O/SING1
REFINERY NEWS REF/OUT
- Valero Energy Corp's 205,000 barrel-per-day (bpd) Houston refinery is recovering from an electrical power interruption on Wednesday morning, the company said in a notice filed with a community warning system.
NEWS
- OPEC+ is likely to consider raising its oil output by 137,000 barrels per day for April, three sources with knowledge of OPEC+ thinking said as the group prepares for peak summer demand and a price boost from tensions between the U.S. and OPEC member Iran.
- An Indonesian court is set to deliver verdicts on Thursday on nine people facing charges related to alleged illegal imports of crude oil, leasing of a fuel terminal, and other actions that caused a loss to the state of 285 trillion rupiah ($17 billion).
- Oil prices inched up on Thursday as investors gauged whether U.S.-Iran talks could avert a military conflict that risks supply disruptions, though gains were capped by a build in U.S. crude inventories. O/R
PRICES
MIDDLE DISTILLATES | ||||
CASH ($/BBL) | ASIA CLOSE | Change | Prev Close | RIC |
Spot Gas Oil 0.25% | 91.15 | 0.18 | 90.98 | GO25-SIN |
GO 0.25 Diff | -0.67 | -0.09 | -0.58 | GO25-SIN-DIF |
Spot Gas Oil 0.05% | 91.80 | 0.22 | 91.58 | GO005-SIN |
GO 0.05 Diff | -0.02 | -0.05 | 0.03 | GO005-SIN-DIF |
Spot Gas Oil 0.001% | 92.69 | 0.22 | 92.47 | GO10-SIN |
GO 0.001 Diff | 0.87 | -0.05 | 0.92 | GO10-SIN-DIF |
Spot Jet/Kero | 92.66 | -0.01 | 92.67 | JET-SIN |
Jet/Kero Diff | 1.13 | 0.02 | 1.11 | 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 Eileen Soreng)
((trixie.yap@thomsonreuters.com;))