Asia Distillates-Dec outlooks mixed; China prompt jet fuel offers emerge
SINGAPORE, Nov 19 (Reuters) -Asia's middle distillates markets turned cautious as mixed outlooks for December emerged, with refiner sales again being done at discounts and some China barrels on offer for prompt loading, though margins surged to four-month highs.
There is still an air of cautiousness in terms of December's supply availability, which half of the market believes should be sufficient, and how much spot liquidity will be in the market given that some traders could close their books soon, one source said.
Some talks of China-origin jet fuel barrels being offered for prompt end-November loading emerged, with some oil majors hoping to avoid the lowered tax rebate amount starting next month. At least one cargo was under spot discussion, the source said.
Meanwhile, at least two other majors seemingly shifted their December loading cargoes to end-November, a second source said.
Jet fuel spot markets came under pressure as a result, as discounted deals continued for December cargoes.
Refining margins GO10SGCKMc1 closed the trading session at slightly more than a four-month high, as gasoil paper markets continued to retain strength despite weakness in crude futures.
Meanwhile, 10ppm sulphur gasoil cash premiums GO10-SIN-DIF held its ground at 60 cents per barrel amid a buy-sell gap on the trading window.
Regrade JETREG10SGMc1 declined slightly to a premium of 65 cents a barrel, reflecting the slightly weaker jet fuel markets following talks of more potential offers from China.
SINGAPORE CASH DEALS O/AS
- No gasoil deal, one jet fuel deal.
INVENTORIES
- U.S. crude oil and gasoline stockpiles likely rose last week, while distillate inventories were seen down, a preliminary Reuters poll showed on Monday. EIA/S
NEWS
- U.S. crude futures flipped to a contango structure for the first time since February on Monday, with West Texas Intermediate for January delivery trading at a premium to the December contract CLc1-CLc2 in a sign that supply tightness is easing.
- Swiss trading house Trafigura is trying to track down $500 million in Mongolia following a year-long probe of staff and associates over a billion-dollar fraud scheme at its local fuel supply business, according to three trading sources familiar with the case.
- Equinor EQNR.OL has resumed partial production from its Johan Sverdrup oilfield in the North Sea following a power outage, a company spokesperson said on Tuesday.
PRICES
MIDDLE DISTILLATES | ||||
CASH ($/BBL) | ASIA CLOSE | Change | Prev Close | RIC |
Spot Gas Oil 0.5% | 83.55 | 3.00 | 80.55 | GO-SIN |
GO 0.5 Diff | -5.77 | 0.00 | -5.77 | GO-SIN-DIF |
Spot Gas Oil 0.25% | 89.47 | 3.00 | 86.47 | GO25-SIN |
GO 0.25 Diff | 0.15 | 0.00 | 0.15 | GO25-SIN-DIF |
Spot Gas Oil 0.05% | 89.77 | 3.00 | 86.77 | GO005-SIN |
GO 0.05 Diff | 0.45 | 0.00 | 0.45 | GO005-SIN-DIF |
Spot Gas Oil 0.001% | 89.92 | 3.00 | 86.91 | GO10-SIN |
GO 0.001 Diff | 0.60 | 0.00 | 0.60 | GO10-SIN-DIF |
Spot Jet/Kero | 89.96 | 2.41 | 87.54 | JET-SIN |
Jet/Kero Diff | -0.04 | -0.19 | 0.15 | 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 Maju Samuel
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