SINGAPORE, Jan 28 (Reuters) - Asia's diesel market structure firmed on Wednesday, bolstered by strength in ICE gasoil futures and worries around regional supply disruptions affecting front-month supplies.
Some spot supplies could be slightly impacted by regional production disruptions, though further details could not be immediately confirmed.
The east-west price spreads were at discounts of around $45 per metric ton as of market close.
Refining margins GO10SGCKMc1 rebounded, inching back up to $21.5 a barrel levels.
Cash differentials GO10-SIN-DIF broke out of the rangebound trend seen in the past few trading sessions, gaining to premiums of around 45 cents per barrel.
For jet fuel, supply production woes in northeast Asia due to refinery outages could end up pushing up demand for February cargoes in the near term, several trade sources said.
A handful of Japan-based buyers have been in the market for prompt-loading cargoes since the start of the week.
Regrade JETREG10SGMc1 discounts deepened further to around $1 a barrel.
SINGAPORE CASH DEALS O/AS
- No gasoil deal, one jet fuel deal.
INVENTORIES
- Middle distillates stocks held at Fujairah OIl Industry Zone slipped slightly to 3.405 million barrels for the week ended January 26, according to industry information service S&P Global Commodity Insights. FUJAIRAH/
REFINERY NEWS REF/OUT
- Valero Energy Corp VLO.N is restarting the gasoline-producing fluidic catalytic cracker (FCCU 1241) at its 380,000 barrel-per-day (bpd) Port Arthur, Texas, refinery on Tuesday, said people familiar with plant operations.
- The large coker at Motiva Enterprises' 640,500 barrel-per-day (bpd) refinery in Port Arthur, Texas, malfunctioned on Monday night, according to a notice filed with the Texas Commission on Environmental Quality (TCEQ).
NEWS
- Kazakhstan said on Wednesday that it was restarting vast Tengiz oil field in stages and it would try to reach full production within in a week after three transformers burned down losing the republic at least 7.2 million barrels of output.
- U.S. officials are working to issue a general license soon that would lift some sanctions on Venezuela's energy sector, three sources close to the preparation said on Tuesday, a shift from a previous plan to grant individual exemptions to sanctions for companies seeking to do business in the country.
- Oil prices extended gains on Wednesday on lingering supply concerns after a winter storm disrupted U.S. crude output and exports while a weak U.S. dollar and Middle East tensions lent further support. O/R
PRICES
MIDDLE DISTILLATES | ||||
CASH ($/BBL) | ASIA CLOSE | Change | Prev Close | RIC |
Spot Gas Oil 0.25% | 86.35 | 2.55 | 83.80 | GO25-SIN |
GO 0.25 Diff | 0.11 | 0.08 | 0.03 | GO25-SIN-DIF |
Spot Gas Oil 0.05% | 86.39 | 2.55 | 83.84 | GO005-SIN |
GO 0.05 Diff | 0.15 | 0.08 | 0.07 | GO005-SIN-DIF |
Spot Gas Oil 0.001% | 86.69 | 2.63 | 84.06 | GO10-SIN |
GO 0.001 Diff | 0.45 | 0.16 | 0.29 | GO10-SIN-DIF |
Spot Jet/Kero | 85.83 | 1.97 | 83.86 | JET-SIN |
Jet/Kero Diff | 0.60 | -0.14 | 0.74 | 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 Sonia Cheema)
((trixie.yap@thomsonreuters.com;))