Asia’s 10-ppm sulphur gasoil margins weakened on expectations of rising supply in the next few months after the release of the first batch of export quotas from China for 2023.
State-owned refiners previously planned for very little exports this month, but some are now looking for prompt loadings for second-half January following the announcement of new quotas, said analyst Mia Geng at FGE.
This is against a backdrop of rising commercial stockpiles for diesel in China since two weeks.
Refining margins for 10-ppm sulphur gasoil fell by more than $3.50 a barrel to $32.70 a barrel.
Cash differentials for 10-ppm sulphur gasoil also fell to $1.71 a barrel, but losses were cushioned by prompt buying interest in the spot market.
Jet fuel refining margins (JETSGCKMc1) likewise went down to $31.32 a barrel.
Regrade (JETREG10SGMc1) closed the trading session wider at minus $1.38 a barrel.
SINGAPORE CASH DEALS
– No gasoil or jet fuel deal.
