Refining margins for 10ppm sulphur gasoil (GO10SGCKMc1) closed the month’s final trading session above $16 a barrel, extending gains for a sixth consecutive trading day but largely unchanged compared to the previous month.
The margins have been supported by declines in upstream crude futures, while signs of improving regional demand prospects for diesel also lent strength to cracks.
Meanwhile, broader spot activity has tapered off, with the market eyeing upcoming tenders for June.
Cash differentials for Asia’s middle distillate markets were broadly stable on Wednesday, with activity largely subdued on the window except for a trade for 2500ppm sulphur gasoil.
The regrade spread (JETREG10SGMc1) closed at discounts of 79 cents per barrel, holding in a tight range this month.
SINGAPORE CASH DEALS
– One deal for diesel, no deal for jet
REFINERY UPDATES
– Portugal’s Galp will be gradually restarting units at its Sines oil refinery over the coming days after the major Iberian power outage on Monday forced it to suspend operations, a spokesperson for the company said.
– Mexico’s new Olmeca refinery is ready to restart production, Mexican President Claudia Sheinbaum said, denying that a temporary outage had been caused by sabotage of its catalytic cracking unit.
NEWS
– Oil prices extended declines on Wednesday and were set for their largest monthly drop in more than three years as the global trade war eroded the outlook for fuel demand, while fears of mounting supply also weighed.
– China has waived the 125% tariff on ethane imports from the United States imposed earlier this month, two sources with knowledge of the matter said on Tuesday, among a group of products that have been granted exemptions.
– China’s Zhejiang Jiaao Enprotech said on Wednesday its subsidiary had obtained a state-granted export license for sustainable aviation fuel for 2025.
– U.S. industrial conglomerate Koch’s Minerals & Trading unit is exiting the crude and refined products business to focus on more consumer-facing products, a spokesperson for KM&T said.
Source: Reuters
