Asia Distillates-Thin spot liquidity emerges; September refiner sales continue
SINGAPORE, Aug 19 (Reuters) -Asia's middle distillates markets kicked off the trading week with thin spot liquidity both in the physical and paper markets, with more September sales being discussed.
Refiners continue their September sales activity, in line with prior expectations, as South Korea's SK Energy continued its offer for four more gasoil cargoes.
Refining margins GO10SGCKMc1 slipped to almost $14.5 a barrel, reflecting the weakness in both paper and ICE gasoil markets.
Cash discounts GO10-SIN-DIF were weighed on by the weaker paper market structure for September and October, which flipped to a contango representing further prompt market weakness. Discounts were at 24 cents a barrel at the close of the trading session.
For jet fuel, there were heavy expectations of more offers emerging for September cargoes from northeast Asia, likewise gasoil, with China-based refiners yet to seriously start discussions.
Regrade JETREG10SGMc1 narrowed slightly to a discount of 80 cents per barrel, given the weakness in gasoil in comparison with jet fuel.
SINGAPORE CASH DEALS O/AS
- No deals for both fuels
NEWS
- China's gasoline exports fell 35.7% in July from a year earlier, customs data showed on Sunday, as refiners lowered crude runs and held back from shipments due to weakening profit margins.
- Oil prices eased in trading on Monday as fears of weaker demand in top oil importer China weighed on market sentiment while investors focused on the progress of ceasefire talks in the Middle East, which could reduce supply risks. O/R
- Russian oil companies have boosted oil refining volumes this month as Gazprom GAZP.MM plants ramped up output, daily newspaper Kommersant reported on Monday citing unnamed sources.
PRICES
MIDDLE DISTILLATES | ||||
CASH ($/BBL) | ASIA CLOSE | Change | Prev Close | RIC |
Spot Gas Oil 0.5% | 85.99 | -2.46 | 88.44 | GO-SIN |
GO 0.5 Diff | -6.40 | -0.06 | -6.34 | GO-SIN-DIF |
Spot Gas Oil 0.25% | 91.34 | -2.46 | 93.79 | GO25-SIN |
GO 0.25 Diff | -1.05 | -0.06 | -0.99 | GO25-SIN-DIF |
Spot Gas Oil 0.05% | 90.56 | -2.46 | 93.01 | GO005-SIN |
GO 0.05 Diff | -1.83 | -0.06 | -1.77 | GO005-SIN-DIF |
Spot Gas Oil 0.001% | 92.15 | -2.46 | 94.60 | GO10-SIN |
GO 0.001 Diff | -0.24 | -0.06 | -0.18 | GO10-SIN-DIF |
Spot Jet/Kero | 91.26 | -2.30 | 93.56 | JET-SIN |
Jet/Kero Diff | -0.38 | -0.02 | -0.36 | 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 Shailesh Kuber
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