Asia’s middle distillates markets were thinly discussed, though market sentiment turned slightly cautious to bearish given the narrower weak east-west arbitrage spread and worries of sufficient supplies.
On spot refiner sales, China-origin barrels for April loading were on offer in the market, according to multiple trade sources – though expectations are for spot discussions to flip into discounts soon.
Meanwhile, talks of some Middle East and India-origin barrels bound for the west starting to avoid the Suez Canal route emerged, with at least one vessel seemingly changing course.
For now, second-half March loading cargoes from India to northwest Europe were likely to go via the Cape of Good Hope route, two trade sources added.
Concerns that more swing suppliers will direct their cargoes to Asia, due to a narrower east-west arbitrage price spread at around $21 a ton at the market’s close, were also prevalent.
Refining margins (GO10SGCKMc1) barely moved from the previous trading session, hovering at nearly two-month lows of below $13.5 a barrel.
At the market’s close, the 10ppm sulphur gasoil cash differentials (GO10-SIN-DIF) were little changed from the previous trading session at 24 cents a barrel.
Regrade (JETREG10SGMc1) was slightly supported, with discounts narrowing slightly to around $1.1 a barrel.
SINGAPORE CASH DEALS
– No deals for both fuels
INVENTORIES
– U.S. crude oil stocks rose last week while fuel inventories fell, market sources said, citing American Petroleum Institute figures on Tuesday.
– Middle distillates stocks gained for a second straight week to 2.571 million barrels in the week ended March 17, according to industry information service S&P Global Commodity Insights.
NEWS
– China’s gasoline exports in February fell to their lowest level since August 2012, customs data showed on Tuesday, on lower refinery production and slimmer profit margins.
– A ship carrying Russian crude transferred from three smaller tankers that are under U.S. sanctions unloaded last week at a Chinese port, shiptracking data shows, ending an unusual month-long voyage highlighting the efforts of producers and traders to keep Moscow’s oil flowing despite tightened curbs.
– Sales of marine fuel at top global refuelling ports are slowing at the start of this year as the shipping sector grapples with uncertainty over geopolitics and the impact of escalating tariffs on global trade, industry sources said.
– Oil prices fell on Wednesday after Russia agreed to U.S. President Donald Trump’s proposal that Moscow and Kyiv stop attacking each other’s energy infrastructure temporarily, which could lead to more Russian oil entering global markets.
Source: Reuters
