Asia’s middle distillates markets were supported by more upbeat paper swaps activity and firmer ICE gasoil futures, while talks of May-loading export estimates from China emerged.
More sale offers emerged from northeast Asia in line with earlier expectations, despite earlier talks of possible run cuts in the region because of squeezed refining margins.
China-origin exports for May are estimated at 700,000-750,000 metric tons, slightly down from the April loading estimates.
Refining margins GO10SGCKMc1 for the fuel were almost at $15.60 a barrel at the market’s close.
Spot market differentials GO10-SIN-DIF, however, dipped by 5 cents from the previous session as some ready May sellers emerged from the sidelines; the market was still discussed at premiums.
Likewise gasoil, more jet fuel spot offers also emerged from some key northeast Asian refiners, with China majors also entering the foray. SK Energy is on its way to selling its seventh jet fuel cargo for May shipment.
China-origin exports, however, are estimated to remain high at close to 2 million tons for May loading, given the strength in aviation bunkering demand.
Regrade JETREG10SGMc1 closed the market’s session much wider at a discount of more than $2 a barrel, a reflection of the weakness in fundamentals and steady exports from northeast Asia.
SINGAPORE CASH DEALS
– No deals for both fuels.
INVENTORIES
– U.S. crude stockpiles were expected to have risen last week, while product inventories likely fell, a preliminary Reuters poll showed on Monday.
NEWS
– Pakistan’s plans to deregulate fuel prices could lead refiners to halt planned upgrades worth up to $6 billion and force some refineries to close, some of the country’s top refiners said in a letter to the country’s oil regulator.
– Oil prices gained on Tuesday after stronger economic data out of Europe, as investors also weighed the potential fallout from any fresh U.S. sanctions on Iran’s oil exports with tensions remaining high in the Middle East.
Source: Reuters (Reporting by Trixie Yap; Editing by Tasim Zahid)
