The Asian middle distillates market took a slight breather on Tuesday, with prices edging down from the previous session as traders awaited more spot sales from August refinery supplies.
The East-West spread returned to a narrower discount range of around $67 per tonne, following the weak near-month ICE gasoil market. Meanwhile, more August spot sales activity could emerge this week as refineries continue with their regular export schedules.
The refining margin (GO10SGCKMc1) fell by nearly $1.5 per barrel from the previous session to just below $19.5 per barrel. The 10ppm sulfur gasoil spot differential (GO10-SIN-DIF) slipped by 8 cents from the previous session, influenced by a weaker paper market structure. Low-priced offers also exerted slight pressure against a backdrop of limited spot buying interest.
In the jet fuel sector, the arbitrage spread between Asia and the U.S. West Coast still offers sellers slim profit margins, but no actual chartering deals have materialized. The spread indicator (JETREG10SGMc1) further narrowed to a discount of $1.4 per barrel, reflecting the relative weakness of the gasoil market compared to jet fuel.
【Singapore Spot Trading】
– No deals were recorded for either fuel
【Inventory Dynamics】
– A preliminary Reuters survey suggests U.S. crude, distillate, and gasoline inventories likely fell last week
【Refinery Dynamics】
– BP’s 440,000 barrels-per-day Whiting, Indiana refinery reported flaring on Monday due to operational conditions
【Industry News】
– India’s fuel demand in June rose 1.9% year-on-year, with total consumption reaching 20.31 million metric tonnes for the month, according to PPAC data from the Petroleum Ministry.
– Fuel oil imports into the U.S. Gulf Coast refining hub hit a record low in June, as tight global supplies prompted refineries to process more heavy, sour crude.
– Oil prices retreated on Tuesday as investors assessed the impact of new U.S. tariffs and OPEC+’s larger-than-expected production increase for August. Prices had risen nearly 2% the previous day.
(Source: Reuters)
