Asia Distillates-More Feb refinery offers emerge for diesel; market structure firms

Reuters
Jan 14
Asia Distillates-More Feb refinery offers emerge for diesel; market structure firms

SINGAPORE, Jan 14 (Reuters) - Asia's diesel spot activity off screen stayed upbeat, as a handful of refiners continued their February spot offers, while east-west price spreads widened from the past two trading sessions.

At least two South Korean refiners were in the market to offering end-February shipment cargoes, with discussions underway.

The east-west price spreads came into focus, with traders saying a widening difference between the two regions is likely to prompt more swing suppliers to pivot west in the coming weeks.

February and March east-west price spreads widened to discounts of $32-33 per metric ton, compared with $26-28 a ton last week.

The 10ppm sulphur gasoil refining margins GO10SGCKMc1 gained further to around $19.6 a barrel, a one-month high.

Window spot activity however remained thin, with cash differentials GO10-SIN-DIF gaining 2 cents per barrel in line with the firmer paper market structure.

For jet fuel, the gap between Asia and the U.S. west coast paper markets declined further to below $20 a barrel, Reuters calculations showed.

However, regrade JETREG10SGMc1 gained to higher premiums of 40-50 cents per barrel.

SINGAPORE CASH DEALS O/AS

- No deal for jet or gasoil

INVENTORIES

- Middle distillates stocks held at Fujaiarah Industry Zone rose slightly to 2.566 million barrels, its highest level in a month, for the week ended January 12, according to industry information service S&P Global Commodity Insights. FUJAIRAH/

REFINERY NEWS REF/OUT

- Marathon Petroleum Corp MPC.N reported on Tuesday that a fire was extinguished at its 631,000 barrel-per-day (bpd) Galveston Bay refinery in Texas City, Texas.

NEWS

- Venezuela's state oil company has begun reopening some of the wells it and its joint venture partners had shut amid a strict U.S. embargo, as crude exports resume with two shipments departed on Monday, three sources close to operations said.

- Indonesia has scrapped plans to increase the mandatory biodiesel mix to 50% this year, maintaining the current blend of 40% palm oil-based fuel and 60% diesel, deputy energy minister Yuliot Tanjung said on Wednesday.

- China's oil imports from Venezuela are expected to slump starting from February as fewer tankers have managed to leave for Caracas' top crude buyer after the U.S. claimed control of the OPEC producer, traders and analysts said.

- China's crude oil imports rose 17% from a year earlier in December, while total imports in 2025 rose 4.4%, government data showed on Wednesday.

PRICES

MIDDLE DISTILLATES

CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.25%

82.28

1.15

81.14

GO25-SIN

GO 0.25 Diff

-0.11

0.02

-0.13

GO25-SIN-DIF

Spot Gas Oil 0.05%

82.18

1.15

81.04

GO005-SIN

GO 0.05 Diff

-0.21

0.02

-0.23

GO005-SIN-DIF

Spot Gas Oil 0.001%

82.52

1.15

81.38

GO10-SIN

GO 0.001 Diff

0.13

0.02

0.11

GO10-SIN-DIF

Spot Jet/Kero

84.18

1.07

83.11

JET-SIN

Jet/Kero Diff

1.05

-0.05

1.10

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 Tasim Zahid)

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

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