Demand remains a bearish price driver, as evidenced from the few tenders from importers in southeast Asia to buy March or April material. Supply remains sufficient entering March as refiners continue to maintain their high rates, aside from scheduled maintenance plans in northeast Asia, including China. Refining margins for 10 ppm sulphur gasoil closed the last trading session for February at $24.73 per barrel, while jet fuel refining margins were at $23.03 per barrel. Cash differentials for 10 ppm sulphur gasoil fell by more than 50% month-on-month, reflecting the strong selling interest in the market
SINGAPORE CASH DEALS - No gasoil or jet fuel deal.
TENDERS - Malaysia's Petco offers March-loading gasoil from Pengerang.
INVENTORIES - U.S. crude and gasoline inventories likely increased last week, while distillate stockpiles were expected to have fallen, a preliminary Reuters poll showed on Monday. Distillate inventories , which include diesel and heating oil, were expected to have decreased by about 500,000 barrels last week. NEWS - Strong pick-up in fuel demand in China and flattish supply from other producers will push the oil market into deficit in the second half of this year, leading OPEC to reverse its production cut at the June meeting, analysts at Goldman Sachs said. - Russian oil pipeline monopoly Transneft said on Monday that it had started pumping oil from Kazakhstan to Germany via Poland through the Druzhba pipeline, while halting deliveries to Poland, Russian news agencies reported. - Per capita spending in China fell 0.2% in real terms last year as harsh COVID curbs took their toll on consumer appetite, marking only the third such decline since records for that data began in 1980. - A price cap on Russian naphtha could pressure east-bound supplies to four-month lows in March, estimates by traders and analysts showed. - Oil prices rose in Asian trade on Tuesday, supported by hopes a solid economic rebound in China will drive up fuel demand, offsetting worries about further U.S. interest rate hikes dragging on consumption in the world's biggest economy. - Top oil exporter Saudi Arabia is expected to raise its official selling prices (OSPs) for Asian buyers in April, tracking stronger physical premiums this month amid the prospect of a demand revival in China. - Urals crude exports to China from Russia's Western ports rose in February month on month on lower freight costs and rising demand, Reuters sources said.
PRICES
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close
Spot Gas Oil 0.5% 98.54 -0.43 -0.43 98.97 GO 0.5 Diff -6.49 -0.04 0.62 -6.45 Spot Gas Oil 0.25% 98.56 -0.43 -0.43 98.99 GO 0.25 Diff -6.47 -0.04 0.62 -6.43 <GO25-SIN-DIF
>
Spot Gas Oil 0.05% 101.38 -0.43 -0.42 101.81 GO 0.05 Diff -3.65 -0.04 1.11 -3.61 <GO005-SIN-DI
F>
Spot Gas Oil 0.001% 106.18 -0.43 -0.40 106.61 GO 0.001 Diff 1.15 -0.04 -3.36 1.19 <GO10-SIN-DIF
>
Spot Jet/Kero 104.36 -0.07 -0.07 104.43 Jet/Kero Diff 1.03 0.04 4.04 0.99 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 Shailesh Kuber)
