Asia’s diesel markets recovered on Friday after nearly a week of losses, with physical deals emerging on the window for the first time in two weeks and timespreads regaining some ground, though cash premiums were still under pressure.
Talks of easing supply tightness going into December were in focus for the week, as some traders were expecting a resumption of exports from northeast Asia, especially South Korea after the maintenance season and China, amid healthy margins.
Some sporadic December demand is still expected to surface in the next 1-2 weeks as some buyers still have import requirements, especially in southeast Asia, several trade sources said.
Diesel timespreads rose back to around $1.2 a barrel, as some buying for December paper emerged.
The 10ppm sulphur gasoil refining margins (GO10SGCKMc1) recovered slightly to $22.8 a barrel, reversing some of the losses from previous sessions.
Cash differentials (GO10-SIN-DIF) fell further to more than one-month lows, with levels closing at premiums of $1.45 a barrel as lower-priced offers on the window stayed persistent.
Regrade (JETREG10SGMc1) was little changed, hovering at premiums of 60-70 cents per barrel.
SINGAPORE CASH DEALS
– One gasoil deal, not jet fuel deal
INVENTORIES
– Gasoil stocks independently held in the Amsterdam-Rotterdam-Antwerp refining and storage hub fell by 7% on the week, data from Dutch consultancy Insights Global showed on Thursday.
NEWS
– OPEC+ is likely to leave oil output levels unchanged at its meetings on Sunday and to agree on a mechanism to assess members’ maximum production capacity, two delegates from the group and a source familiar with OPEC+ talks told Reuters.
– Brent crude oil futures inched up on Friday as drawn-out Russia-Ukraine peace talks kept geopolitical risks elevated, while traders kept one eye on the outcome of an OPEC+ meeting on Sunday for clues about potential output changes.
– An outage at the world’s biggest exchange operator, CME Group, has halted trade on its currency platform and in futures spanning foreign exchange, commodities, Treasuries and stocks, freezing a handful of benchmarks as brokers pulled products.
Source: Reuters
