Asia’s diesel market cooled on Monday, paring back after a recent rally that sent benchmarks soaring, while the regrade discount narrowed as the jet fuel market held steady.
The margin for benchmark 10ppm sulphur gasoil (GO10SGCKMc1) closed at a premium of $24.12 a barrel, data compiled by LSEG showed, retreating sharply from a 20-month high seen last week as derivative markets sold off.
Meanwhile, spot markets also eased slightly on a lower-priced trade for prompt dates, though a relatively tight supply balance continued to keep cash differentials elevated.
The retreat in the gasoil rally led to a narrower regrade discount versus last week. The prompt regrade spread narrowed to 9 cents per barrel at the close on Monday. (JETREG10SGMc1)
The jet fuel market held largely stable, with backwardation still widening slightly at the prompt months.
SINGAPORE CASH DEALS
– One gasoil deal, no jet fuel deal.
REFINERY NEWS
– Motiva Enterprises’ 640,500 barrel-per-day Port Arthur, Texas refinery along with two others in the east Texas Gulf Coast city were operating normally after recovering from malfunctions, said people familiar with plant operations.
– State-owned Kuwait Integrated Petroleum Industries Company has delayed the restart of a crude unit at its 615,000 barrels per day Al Zour oil refinery that was shut down on October 21 due to a fire, industry monitor IIR said.
OTHER NEWS
– Oil prices climbed in early trade on Monday after OPEC+ decided to hold off production hikes in the first quarter of next year, which eased rising fears of a supply glut, but weak factory data in Asia capped the gains.
– Italy’s Eni and Malaysia’s state energy company Petronas said on Monday they had signed a binding agreement to form a jointly owned company combining some of their oil and gas exploration and production assets in Indonesia and Malaysia.
– Turkey’s largest oil refineries are buying more non-Russian oil in response to the latest Western sanctions on Russia, two people with direct knowledge of the matter and several industry sources told Reuters.
– India’s Bharat Petroleum Corp has bought crude oil from Abu Dhabi in a spot tender to replace oil from Russia after the U.S. sanctioned two major Russian producers, two trade sources said on Monday.
Source: Reuters
