Asia Distillates-Window deals resurface; Singapore stockpiles sink to more than one-year low

Reuters
Jul 24
Asia Distillates-Window deals resurface; Singapore stockpiles sink to more than one-year low

SINGAPORE, July 24 (Reuters) - Asia's middle distillates markets turned slightly more upbeat, with trading sentiment firming slightly amid falling stockpiles in Singapore and as more physical window spot discussions emerge.

Talks of some August spot cargoes from northeast Asian refiners being done at discounts of 60-80 cents per barrel surfaced, though further details could not be confirmed.

More China-origin jet fuel offers also emerged in the spot market.

The east-west price spreads narrowed slightly from the previous trading session, with Asian markets strengthening slightly given a lack of swing supplies within this region in the near-term.

Refining margins GO10SGCKMc1 held steady at $21 a barrel at Asian market close.

On the trading window, deals for higher-sulphur gasoil cargoes resurfaced, but discussions for 10ppm sulphur gasoil remained muted. Cash differentials GO10-SIN-DIF edged up to $1.66 a barrel, reflecting the steeper paper market backwardation.

Regrade JETREG10SGMc1 widened slightly to discounts of around $2.4 a barrel.

SINGAPORE CASH DEALS O/AS

- Two gasoil deals, no jet fuel deals.

INVENTORIES

- U.S. crude oil and gasoline inventories fell last week, buoyed by stronger demand and exports, while distillate stockpiles rose, the U.S. Energy Information Administration $(EIA)$ said on Wednesday. EIA/S

- Singapore's middle distillates stocks dipped below 8 million barrels for the first time in more than a year, tracking higher net exports week on week, official data showed on Thursday. O/SING1

NEWS

- Finnish biofuel maker and oil refiner Neste NESTE.HE reported stronger than expected core earnings for the second quarter, driven by soaring sales of sustainable aviation fuel (SAF), sending its shares rising 13% in early trading.

- Azeri BTC crude loadings from the Turkish port of Ceyhan were suspended as a test result was awaited on the contamination of organic chloride in the flows, a port agent told Reuters on Thursday.

- The oil tanker Omni, carrying Russian Urals crude, has been diverted away from the sanctioned Nayara Energy's Vadinar port to discharge its cargo at the port of Mundra in India, according to shipping data and two industry sources on Thursday.

- Foreign oil tankers are being temporarily barred from loading at Russia's main Black Sea ports following new regulations, two industry sources said on Wednesday, effectively blocking exports from Kazakhstan handled largely by a consortium partly owned by U.S. energy majors.

- California government officials are trying to find a buyer for Valero Energy's VLO.N Benicia refinery near San Francisco, three sources familiar with the matter said, an unusual effort as the clock ticks down on the company's planned closure of the facility in April.

PRICES

MIDDLE DISTILLATES

CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.5%

85.04

0.73

84.31

GO-SIN

GO 0.5 Diff

-5.11

0.03

-5.14

GO-SIN-DIF

Spot Gas Oil 0.25%

89.29

0.80

88.49

GO25-SIN

GO 0.25 Diff

-0.86

0.10

-0.96

GO25-SIN-DIF

Spot Gas Oil 0.05%

90.32

0.79

89.53

GO005-SIN

GO 0.05 Diff

0.17

0.09

0.08

GO005-SIN-DIF

Spot Gas Oil 0.001%

91.81

0.73

91.08

GO10-SIN

GO 0.001 Diff

1.66

0.03

1.63

GO10-SIN-DIF

Spot Jet/Kero

88.07

0.70

87.37

JET-SIN

Jet/Kero Diff

0.30

0.05

0.25

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;))

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