Asia Distillates-Diesel market structures firm; fundamentals little changed

Reuters
Jan 23
Asia Distillates-Diesel market structures firm; fundamentals little changed

SINGAPORE, Jan 23 (Reuters) - Asia's diesel market structures were firmer week on week, buoyed by stronger front-month price performance in the West, despite overall regional fundamentals being little changed.

While the east-west price spreads were at the widest discounts since just over a month ago in the past few trading sessions, discounts turned slightly narrower at $42-$43 a ton by market close.

On the spot front, regional refiners proceeded with February sales, though discussion levels continued to hover in the discounted territory.

Refining margins GO10SGCKMc1 eased slightly from the previous trading session to $21.2 a barrel, though they remained more than $2 a barrel higher from a week earlier.

The 10ppm sulphur gasoil cash differentials GO10-SIN-DIF gained to premiums of 21 cents per barrel, also higher from a week earlier.

Meanwhile, for jet fuel, market structures recovered slightly from the previous session.

The remaining February-loading jet fuel cargoes were being discussed at discounts linked to FOB Singapore quotes, with more offers in the market from a handful of northeast Asian refiners.

Regrade JETREG10SGMc1 discounts were slightly narrower at around minus 30 cents per barrel.

SINGAPORE CASH DEALS O/AS

- One gasoil deal, no jet fuel deal

INVENTORIES

- Total oil product stocks independently held in the Amsterdam-Rotterdam-Antwerp $(ARA)$ refining and storage hub rose by over 1% on the week to their highest since March, data from Dutch consultancy Insights Global showed on Thursday. ARA/

- U.S. crude, gasoline and distillate inventories rose last week as both refinery and consumer demand slumped, the Energy Information Administration said on Thursday. EIA/S

REFINERY NEWS REF/OUT

- Marathon Petroleum MPC.N reported on Thursday that a fluid catalytic cracking unit (FCCU) experienced operational issues at its 631,000‑barrel‑per‑day Galveston Bay refinery in Texas, according to a regulatory filing.

NEWS

- Oil prices rebounded on Friday after U.S. President Donald Trump renewed threats against major Middle Eastern producer Iran, raising concerns of military action that could disrupt supplies. O/R

- Oil production at Kazakhstan's vast Tengiz oil field, one of the world's largest, did not resume after it had been shut down on Monday, Interfax said on Friday, citing Kazakh oil producer Tengizchevroil $(TCO)$, which is led by Chevron CVX.N.

- Trading house Trafigura sold its first cargo of Venezuelan crude oil as part of a 50-million-barrel supply deal between Caracas and Washington, industry sources said on Thursday, with Spanish refiner Repsol set to take the shipment.

PRICES

MIDDLE DISTILLATES

CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.25%

83.94

-1.23

85.17

GO25-SIN

GO 0.25 Diff

-0.05

0.04

-0.09

GO25-SIN-DIF

Spot Gas Oil 0.05%

83.98

-1.11

85.09

GO005-SIN

GO 0.05 Diff

-0.01

0.16

-0.17

GO005-SIN-DIF

Spot Gas Oil 0.001%

84.20

-1.23

85.43

GO10-SIN

GO 0.001 Diff

0.21

0.04

0.17

GO10-SIN-DIF

Spot Jet/Kero

84.59

-0.94

85.53

JET-SIN

Jet/Kero Diff

0.90

0.04

0.86

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)

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

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