A lack of trading activity at the close of the week kept a lid on gains, against a backdrop of unchanged demand-supply fundamentals.
Cash differentials for 10 ppm gasoil sulphur rose by around 60% on week to 91 cents per barrel as trader-based buying interest continued. However, offers were minimal and capped discussion momentum. The market will only see an appreciable tightening when a confluence of factors comes into play – Europe finally drawing down on distillate stocks that are still at one-year highs, the transitioning to summer grade diesel which will see Asian refiners join the fray, said Refinitiv Oil Research. Likewise, jet fuel refining margins rebounded close to 17% week on week, despite ready supply availability.
Forward month regrade widened further to a discount of $3.55 per barrel, while prompt month regrade widened to a discount of $4.40 per barrel. Both were close to levels seen in December last year.
SINGAPORE CASH DEALS - No gasoil or jet fuel deals.
INVENTORIES - Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area fell for the third week in a row, data from Dutch consultancy Insights Global showed on Thursday. Gasoil stockpiles are still near a two-year high. Gasoil demand up the river Rhine was healthy and rain helps maintain water levels friendly to barge shipping, said Insights Global's Lars van Wageningen. France was importing more because of strikes in the refining sector, he added. NEWS - Oil prices rose on Friday after a meeting between Saudi Arabia and Russia calmed markets amid strong China demand expectations, but were headed for their biggest weekly falls since December as as a banking crisis rocked global financial and oil markets. - Indian gas firm GAIL (India) Ltd has signed a memorandum of understanding (MoU) with Shell Energy India Private Ltd. to diversify feedstock for its petrochemical plant, the company said on Friday.
PRICES
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close
Spot Gas Oil 0.5% 93.87 4.03 4.49 89.84 GO 0.5 Diff -6.47 0.17 -2.56 -6.64 Spot Gas Oil 0.25% 93.42 4.03 4.51 89.39 GO 0.25 Diff -6.92 0.17 -2.40 -7.09 <GO25-SIN-DIF
>
Spot Gas Oil 0.05% 96.71 4.03 4.35 92.68 GO 0.05 Diff -3.63 0.17 -4.47 -3.8 <GO005-SIN-DI
F>
Spot Gas Oil 0.001% 101.25 4.07 4.19 97.18 GO 0.001 Diff 0.91 0.21 30.00 0.7 <GO10-SIN-DIF
>
Spot Jet/Kero 96.74 3.12 3.33 93.62 Jet/Kero Diff 0.73 0 0.00 0.73 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 Krishna Chandra Eluri)
