Asia Distillates-Upbeat trading resumes; Trafigura back with buying action
SINGAPORE, Aug 15 (Reuters) -Asia's middle distillates markets returned to a slightly more upbeat state, as spot activity picked up in the trading window and more sellers emerged with September sales, but a lack of paper activity limited trading momentum.
Trafigura resumed its buying spree for end-August and early September spot cargoes at 20 cents per barrel discounts, similar to earlier prices they bought in the past two weeks.
Meanwhile, at least two more refiners offered September cargoes for sale - with most cargoes still being sold at discounts.
Refining margins GO10SGCKMc1 for the fuel fell back down to $16 a barrel, erasing gains in the past two trading sessions.
Spot discounts GO10-SIN-DIF barely moved and closed the trading session at around 18 cents a barrel, after Trafigura bought more cargoes.
So far they have bought 600,000 barrels of end-August to early September loading cargoes
For jet fuel markets, Japan-based buyers continued to sweep up September-loading cargoes on offer, according to several trading sources, though expectations were mixed on whether they would continue their buying spree further.
August refining output should be higher than July and that should help with local production, one source said.
July imports of the aviation fuel to the country hit a five-month high, Kpler and LSEG shiptracking data showed.
Regrade JETREG10SGMc1 remained at nearly discounts of around 90 cents per barrel.
SINGAPORE CASH DEALS O/AS
- One gasoil deal, no jet fuel deal.
INVENTORIES
- Singapore's middle distillates stock levels edged up for a third straight week, hitting above the 12 million barrel mark, as the decline in jet fuel/kerosene net exports offset gains in diesel/gasoil net exports, official data showed on Thursday. O/SING1
- U.S. crude oil stockpiles rose unexpectedly last week, building for the first time since late June, while gasoline and distillate inventories fell more than forecast, the Energy Information Administration (EIA) said on Wednesday. EIA/S
NEWS
- China's oil refinery output in July fell 6.1% from a year earlier, official data showed on Thursday, down for a fourth month as thin processing margins and tepid fuel demand discouraged production.
- Global jet fuel demand is poised to soften as a slowdown in consumer spending hits travel budgets, a shift that could weigh on oil prices in the months ahead.
PRICES
MIDDLE DISTILLATES | ||||
CASH ($/BBL) | ASIA CLOSE | Change | Prev Close | RIC |
Spot Gas Oil 0.5% | 88.31 | -0.94 | 89.25 | GO-SIN |
GO 0.5 Diff | -6.34 | 0.00 | -6.34 | GO-SIN-DIF |
Spot Gas Oil 0.25% | 93.66 | -0.94 | 94.60 | GO25-SIN |
GO 0.25 Diff | -0.99 | 0.00 | -0.99 | GO25-SIN-DIF |
Spot Gas Oil 0.05% | 92.88 | -0.94 | 93.82 | GO005-SIN |
GO 0.05 Diff | -1.77 | 0.00 | -1.77 | GO005-SIN-DIF |
Spot Gas Oil 0.001% | 94.47 | -0.95 | 95.42 | GO10-SIN |
GO 0.001 Diff | -0.18 | -0.01 | -0.17 | GO10-SIN-DIF |
Spot Jet/Kero | 93.32 | -1.04 | 94.36 | JET-SIN |
Jet/Kero Diff | -0.37 | -0.05 | -0.32 | 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 Janane Venkatraman
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