Asia’s diesel markets remained well supported in the front month, as cash premiums and margins hover at two-month highs, with the backwardated price structure continuing to deepen on Thursday amid slightly bullish sentiment.
Expectations that the market’s balance would remain slightly tighter in the front month because of better regional demand drove prices, though some traders still feel supply is sufficient.
Refining margins (GO10SGCKMc1) jumped by more than $1 a barrel, reflecting the strength in October paper markets.
The October-November backwardation widened even further to $1.77 per barrel.
However, the October east-west price spread continued to narrow to discounts of around $30 per metric ton.
Meanwhile, on the trading window, deals remained brisk for 10ppm sulphur gasoil cargoes and cash differentials (GO10-SIN-DIF) gained to $1.55 a barrel, holding firm at two-month highs.
Some prompt demand from Indonesia emerged for jet fuel cargoes as well, with some traders saying it could be due to some sudden refinery disruption there.
November regrade (JETREG10SGMc1) narrowed to around 80 cents per barrel.
SINGAPORE CASH DEALS
– One gasoil deal, no jet fuel deal
INVENTORIES
– U.S. crude oil, gasoline and distillate inventories rose last week as refining activity and demand softened, the Energy Information Administration said on Wednesday.
NEWS
– Russian oil product exports from the Black Sea port of Tuapse are set to fall to 0.888 million metric tons in October, down 21.7% on a daily basis from 1.098 million metric tons scheduled for September, two traders said on Wednesday.
– U.S. oil refiner Phillips 66 expects to book about $100 million of charges to idle its 139,000-barrel-per-day Los Angeles-area refinery, which will cease operations by year-end, the company said on Wednesday.
– The Group of Seven nations’ finance ministers said on Wednesday they will take joint steps to increase pressure on Russia by targeting those who are continuing to increase their purchases of Russian oil and those that are facilitating circumvention.
– Venezuela’s oil exports averaged 1.09 million barrels per day (bpd) in September, the highest monthly level since February 2020, according to shipping data and documents from state-run energy company PDVSA.
Source: Reuters
