This was following a drop in overnight heating oil futures in the U.S. and weaker margins in northwest Europe.
Thin market liquidity however cushioned market weakness, with market participants noting more tenders in the market for jet fuel instead of 10 ppm sulphur gasoil.
Economics for selling jet fuel are significantly better in comparison with gasoil, one northeast Asian refiner said.
Refining margins fell to $32.01 per barrel.
Cash differentials closed the trading session lower at $2.89 a barrel, with weakness mitigated by firm mid-February demand from a major Chinese refiner.
Jet fuel refining margins fell to $31.81 a barrel even though some mid-February short covering was still present in the open market.
Regrade traded almost rangebound at a discount of 20 cents per barrel.
SINGAPORE CASH DEALS - No gasoil or jet fuel deal.
TENDERS - South Korea's Hyundai Oilbank sells Feb jet fuel
INVENTORIES
- U.S. crude oil and distillate stockpiles likely decreased last week, while gasoline
inventories were expected to have gone up, a preliminary Reuters poll showed on Monday.
Distillate inventories , which include diesel and heating oil, were expected to have
dropped by about 1.8 million barrels last week.
NEWS
- China's economic activity swung back to growth in January, after a wave of COVID-19
infections passed through the country faster than expected following abandonment of pandemic
controls.
- An OPEC+ panel is likely to recommend keeping the oil producer group's current output
policy unchanged when it meets this week, five OPEC+ delegates told Reuters on Monday.
- Asian markets are showing no let up in their demand for Russian oil, absorbing a big rise
in seaborne exports of Urals crude this month and helping Moscow cope even as most Western
buyers stay away, according to traders' and Refinitiv Eikon data.
- A nationwide strike in France against pension reform led to a drop in electricity output
and stopped petroleum product deliveries from TotalEnergies sites on Tuesday.
PRICES
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close
Spot Gas Oil 0.5% 105.87 -3.02 -2.77 108.89 GO 0.5 Diff -5.81 -0.12 2.11 -5.69 Spot Gas Oil 0.25% 110.2 -3.02 -2.67 113.22 GO 0.25 Diff -1.48 -0.12 8.82 -1.36 <GO25-SIN-DIF
>
Spot Gas Oil 0.05% 111.68 -3.02 -2.63 114.7 GO 0.05 Diff 0 -0.12 -100.00 0.12 <GO005-SIN-DI
F>
Spot Gas Oil 0.001% 114.57 -3 -2.55 117.57 GO 0.001 Diff 2.89 -0.1 -3.34 2.99 <GO10-SIN-DIF
>
Spot Jet/Kero 113.78 -3.36 -2.87 117.14 Jet/Kero Diff 2.4 0.21 9.59 2.19 For a list of derivatives prices, including
margins, please double click the RICs below.
Brent M1 Gasoil M1 Gasoil M1/M2 Gasoil M2 Regrade M1 Regrade M2 Jet M1 Jet M1/M2 Jet M2 Gasoil 500ppm-Dubai Cracks M1
Gasoil 500ppm-Dubai Cracks M2
Jet Cracks M1 Jet Cracks M2 East-West M1 East-West M2 LGO M1 LGO M1/M2 LGO M2 Crack LGO-Brent M1 Crack LGO-Brent M2 (Reporting by Trixie Yap; Editing by Rashmi Aich)
