Asia Distillates-Market turns quiet; front-month supply issues stay in focus

Reuters
29 May
Asia Distillates-Market turns quiet; front-month supply issues stay in focus

SINGAPORE, May 29 (Reuters) - Asia's middle distillates markets turned slightly quiet on window on Thursday, with trading sentiment slightly mixed given fresh supply issues in northeast Asia.

Production outages at two of Japan's refining sites came into focus, with talks of tightened front-month supplies in that region emerging.

Talks of possible cancellations of spot sale cargoes — about 90,000-100,000 metric tons — by one of China's oil majors also surfaced, with a handful of traders attributing it to the weaker export margins.

Meanwhile, spot offers for June-loading jet fuel from China refiners continued - in line with earlier expectations.

The 10ppm sulphur gasoil refining margins GO10SGCKMc1 continued to hover slightly above $16 a barrel.

Cash differentials GO10-SIN-DIF gained slightly to 30 cents per barrel, but spot window activity remained curtailed and in a wide buy-sell gap.

Regrade JETREG10SGMc1 discount remained little changed at around $1.1 a barrel.

SINGAPORE CASH DEALS O/AS

- No deals for both fuels

INVENTORIES

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

REFINERY NEWS REF/OUT

- Japan's biggest refiner, Eneos Corp 5020.T, experienced an unplanned shutdown of the 145,000 barrels-per-day crude distillation unit at its Sendai refinery in northern Japan, starting May 23, a company spokesperson said on Thursday.

- Japan's Cosmo Oil, a unit of Cosmo Energy Holdings 5021.T, underwent an unplanned shutdown of the 102,000 barrels-per-day (bpd) No.2 crude distillation unit (CDU) at the Chiba refinery, near Tokyo, a company spokesperson said on Thursday.

- Exxon Mobil's XOM.N 250,000 barrel-per-day refinery in Joliet, Illinois brought the catalytic cracker unit back to full capacity, IIR Energy said on Thursday.

NEWS

- Oil prices rose nearly $1 a barrel on Thursday after a U.S. court blocked most of President Donald Trump's tariffs, while the market was watching out for potential new U.S. sanctions curbing Russian crude flows and an OPEC+ decision on hiking output in July. O/R

- Asia's jet fuel exports to the U.S. West Coast are expected to hit at least a one-year high in May, according to shiptracking data and three trade sources, as refinery outages in California boosted prices and import demand.

- Kazakhstan's Energy Minister Erlan Akkenzhenov said on Thursday that an oil price above $70-$75 per barrel is likely to be suitable for all countries.

PRICES

CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.5%

74.96

1.73

73.23

GO-SIN

GO 0.5 Diff

-5.38

0.03

-5.41

GO-SIN-DIF

Spot Gas Oil 0.25%

78.66

1.73

76.93

GO25-SIN

GO 0.25 Diff

-1.68

0.03

-1.71

GO25-SIN-DIF

Spot Gas Oil 0.05%

80.11

1.73

78.38

GO005-SIN

GO 0.05 Diff

-0.23

0.03

-0.26

GO005-SIN-DIF

Spot Gas Oil 0.001%

80.64

1.73

78.92

GO10-SIN

GO 0.001 Diff

0.30

0.03

0.27

GO10-SIN-DIF

Spot Jet/Kero

79.40

1.51

77.89

JET-SIN

Jet/Kero Diff

0.15

-0.03

0.18

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 Sahal Muhammed)

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

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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