Asia Distillates-Markets turn quiet; cash discounts fall further
SINGAPORE, Sept 6 (Reuters) -Asia's middle distillates markets recorded price volatility through the week, though Friday activity quietened down and prices stabilised against a backdrop of cautious market outlooks, and some October refiner spot sales emerged.
More spot sales will likely emerge closer to mid-September, after a regional conference next week in Singapore, one source said.
Refining margins GO10SGCKMc1 closed the trading week around 30 cents higher week on week at around $13.7 a barrel, despite the past few sessions of ups and downs.
In spot markets, cash discounts GO10-SIN-DIF hovered at record lows of 56 cents a barrel as sellers continued to pressure down the discussion levels and buyers remained at much lower levels.
Sellers have to offer lower in part given the contango market structure currently and they are factoring in the higher costs after for winter-specs gasoil, one source said.
Prompt selling interest stayed strong at the start of the week from a handful of refiners for September cargoes, but overall spot discussions died down as sellers were still mulling October demand-supply expectations.
The slew of deals on the trading window took a pause on Friday, likewise the activity on the paper markets, though some traders were slightly bullish on refinery maintenance causing some shortfall in the Southeast Asian markets.
Regrade JETREG10SGMc1 narrowed back to discounts of 5 cents a barrel as gasoil activity continued to stay weak.
SINGAPORE CASH DEALS O/AS
- No deals for both fuels.
INVENTORIES
- Independently held refined oil products stocks in storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell by 2.5% in the week to Thursday, data from Dutch consultancy Insights Global showed. ARA/
- U.S. crude oil inventories fell to their lowest since September 2023 as imports dropped, while gasoline stockpiles rose with the end of the summer driving season, the Energy Information Administration (EIA) said on Thursday. EIA/S
NEWS
- Nigeria's state-oil firm will supply the Dangote Oil refinery a total of 13 crude cargoes in October to ease pressure on local gasoline supply, head of the firm's downstream operations said on Thursday.
- OPEC+ has agreed to delay a planned oil output increase for October and November, the producers group said on Thursday after crude prices hit their lowest in nine months, adding that it could further pause or reverse the hikes if needed.
- Asian refiners' margins slumped to their lowest seasonal levels since 2020 this week as supplies of diesel and gasoline rose after peak summer travel demand ended, industry officials and analysts said on Friday.
PRICES
MIDDLE DISTILLATES | ||||
CASH ($/BBL) | ASIA CLOSE | Change | Prev Close | RIC |
Spot Gas Oil 0.5% | 79.32 | 0.02 | 79.30 | GO-SIN |
GO 0.5 Diff | -6.42 | 0.04 | -6.46 | GO-SIN-DIF |
Spot Gas Oil 0.25% | 84.35 | 0.02 | 84.33 | GO25-SIN |
GO 0.25 Diff | -1.39 | 0.04 | -1.43 | GO25-SIN-DIF |
Spot Gas Oil 0.05% | 83.78 | 0.02 | 83.76 | GO005-SIN |
GO 0.05 Diff | -1.96 | 0.04 | -2.00 | GO005-SIN-DIF |
Spot Gas Oil 0.001% | 85.18 | -0.06 | 85.24 | GO10-SIN |
GO 0.001 Diff | -0.56 | -0.04 | -0.52 | GO10-SIN-DIF |
Spot Jet/Kero | 85.51 | -0.01 | 85.52 | JET-SIN |
Jet/Kero Diff | -0.17 | 0.04 | -0.21 | 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 Alan Barona
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