A portion of spot buyers came back into the market for early April loading parcels, as evidenced from the higher bid levels for cash premiums. Some were betting for better demand fundamentals to emerge given the tightening of supplies for prompt parcels in the West. A prompt early April cargo was also sold by SK Energy at around flat to a small premium to FOB Singapore quotes via a tender that closed yesterday.
Cash differentials firmed to $1.07 per barrel with a lack of competitively priced offers.
However, some participants were still cautious because of a supply overhang situation in the market, with uncertainty on Chinese export estimates for April looming. Jet fuel refining margins also recovered in the same uptrend fashion at a quicker pace, with regrade narrowing to a discount of $3.85 per barrel as a result.
SINGAPORE CASH DEALS - One gasoil deal, no jet fuel deal.
INVENTORIES
- U.S. crude oil stockpiles rose unexpectedly last week to
their highest in nearly two years, while gasoline and distillate
inventories fell, the Energy Information Administration said on
Wednesday. Distillate stockpiles , which include
diesel and heating oil, fell by 3.3 million barrels in the week
to 116.4 million barrels, versus expectations for a 1.5
million-barrel drop, the data showed. - Middle distillates stocks at key trading hub Singapore
climbed for the third consecutive week, hitting their highest
since October 2021, official data from Enterprise Singapore
showed on Thursday. NEWS
- Asian gasoil stocks have risen sharply in recent weeks
as regional refiners are stuck exporting to markets east of the
Suez, with narrower opportunities to send barrels to Africa
flooded with Russian cargoes, traders and analysts said.
- U.S. motorists face a repeat of last summer's high
gasoline prices, analysts warned on Wednesday, with fuel
stockpiles heading towards multi-year lows ahead of the peak
summer driving season that begins in two months.
- EU countries on Thursday reached a preliminary agreement
to reduce greenhouse gas emissions in the maritime sector by
increasing the use of renewable fuels on ships.
- Oil prices fell on Thursday following three sessions of
gains, after Federal Reserve Chair Jerome Powell highlighted
banking sector credit risks for the world's largest economy,
while U.S. crude stocks rose more than expected. PRICES
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close
Spot Gas Oil 0.5% 94.07 1.43 1.54 92.64 GO 0.5 Diff -6.43 -0.08 1.26 -6.35 Spot Gas Oil 0.25% 93.62 1.43 1.55 92.19 GO 0.25 Diff -6.88 -0.08 1.18 -6.8 <GO25-SIN-DIF
>
Spot Gas Oil 0.05% 97.87 2.04 2.13 95.83 GO 0.05 Diff -2.63 0.53 -16.77 -3.16 <GO005-SIN-DI
F>
Spot Gas Oil 0.001% 101.57 1.55 1.55 100.02 GO 0.001 Diff 1.07 0.04 3.88 1.03 <GO10-SIN-DIF
>
Spot Jet/Kero 96.77 1.72 1.81 95.05 Jet/Kero Diff 0.63 -0.02 -3.08 0.65 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 Sohini Goswami)
