Demand-supply fundamentals have not changed much in the past few days, but buyers have retreated to the sidelines to wait for a clearer market direction, one trader said.
Refining margins were valued at $28.38 a barrel at the close on Friday. Cash differentials for 10 ppm sulphur gasoil fell by 13% from the previous Friday close, with aggressive offers from one European major in the market. Supplies remained sufficient for March-loading from northeast Asia despite scheduled maintenance, as evidenced from some emerging tenders to sell material from a few refiners.
Jet fuel refining margins fell almost at a similar pace with gasoil, as evidenced from the relatively stable regrade at a discount of 35 cents. SINGAPORE CASH DEALS - No gasoil or jet fuel deal.
TENDERS - South Korea and China refiners continue their offers for prompt February and March loading parcels. INVENTORIES - Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area rose by 6% to their highest since July 2021, data from Dutch consultancy Insights Global showed on Thursday. Gasoil stocks reached 2.3 million tonnes, rising as importers in the region increase Russian purchases ahead of a Feb. 5 EU ban on Russian oil product imports, said Insights Global's Lars van Wageningen. NEWS - U.S. oil refiners are dialing back operating runs this quarter after sky-high utilization rates last year, and aim to operate at between 85% and 89% of capacity, according to company outlooks and analysts' estimates.
- China's independent refineries are ramping up imports of discounted fuel oil blended from Russian barrels to use as low-cost feedstock amid a shortage of government crude oil import quotas for some of them, according to trade sources and data. - China's services activity in January expanded for the first time in five months as spending and travel got a boost from the lifting of stringent COVID-19 curbs, sending business confidence to near 12-year highs, a private sector survey showed on Friday.
- Oil prices were little changed on Friday, with major benchmarks headed for their
second straight week of losses, as the market awaited further signs of fuel demand
recovery in China to offset looming slumps in other major economies. PRICES
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close
Spot Gas Oil 0.5% 101.99 -1.25 -1.21 103.24 GO 0.5 Diff -6.23 -0.28 4.71 -5.95 Spot Gas Oil 0.25% 106.32 -1.25 -1.16 107.57 GO 0.25 Diff -1.9 -0.28 17.28 -1.62 <GO25-SIN-DIF
>
Spot Gas Oil 0.05% 107.8 -1.25 -1.15 109.05 GO 0.05 Diff -0.42 -0.28 NA -0.14 <GO005-SIN-DI
F>
Spot Gas Oil 0.001% 110.56 -1.41 -1.26 111.97 GO 0.001 Diff 2.34 -0.44 -15.83 2.78 <GO10-SIN-DIF
>
Spot Jet/Kero 111.6 -1.01 -0.90 112.61 Jet/Kero Diff 2.99 -0.18 -5.68 3.17 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)
