Asia’s diesel crack extended a rebound to above $26 per barrel on Thursday, with sentiment holding bullish amid supportive demand-supply fundamentals.
The margin for benchmark 10ppm sulphur gasoil (GO10SGCKMc1) rose day-on-day to a premium above $26 a barrel, data compiled by LSEG showed.
Market backwardation widened above $3 a barrel for the November-December spread, reflective of tight prompt availability.
Cash differentials for gasoil also climbed on stronger bids.
Meanwhile, jet fuel’s market structure also strengthened. The regrade spread (JETREG10SGMc1) narrowed slightly to a discount of 42 cents per barrel.
SINGAPORE CASH DEALS
– No gasoil deal, no jet fuel deal.
INVENTORIES
– U.S. distillate stockpiles, which include diesel and heating oil, fell by 643,000 barrels to 111.5 million barrels in the week ended October 31, versus expectations for a 2 million-barrel drop, EIA data showed.
– Singapore middle distillate inventories (STKRS-SIN) rose 8.1% to 9.22 million barrels in the week to November 5, Enterprise Singapore data showed.
REFINERY NEWS
– U.S. oil refiners are expected to have about 803,000 barrels per day of capacity offline in the week ending November 7, increasing available refining capacity by 189,000 bpd, research company IIR Energy said on Wednesday.
OTHER NEWS
– Oil prices regained a little ground on Thursday, buoyed by easing concerns over a potential supply glut as sanctions on Russian companies begin to bite.
– Saudi Arabia has sharply reduced the prices of its crude for Asian buyers in December, responding to a well-supplied market as OPEC+ producers ramp up production.
– India’s Reliance is attempting to re-sell some Middle Eastern crude it snapped up last month to replace Russian oil because of Western sanctions, trade sources said.
– Russia’s oil and gas revenue declined by almost 27% in October to 888.6 billion roubles ($10.93 billion) from the same month a year earlier, finance ministry data showed on Thursday, amid weak oil prices and a strengthening rouble.
Source: Reuters
