The regrade spread widened even further to a discount of $3.90 per barrel triggered by bearish sentiment, with limited buying interest on the jet fuel front as well. Cash differentials for 10 ppm sulphur gasoil trended upwards despite weakness in cracks as buying interest was still present from a handful of traders.
However, some participants were questioning if the demand was organic or just trader-based short covering activity.
The arbitrage differential on an EFS basis remained closed for sellers to send Asian cargoes over to northwest Europe, even as strike action continued in France.
SINGAPORE CASH DEALS - Two gasoil deals, no jet fuel deal.
INVENTORIES
- U.S. crude oil stockpiles were seen rising last week,
while distillate and gasoline inventories were expected to fall,
a preliminary Reuters poll showed on Monday. Six analysts polled
by Reuters estimated on average that crude inventories rose by
about 200,000 barrels in the week to March 24. Distillate
inventories , which include diesel and heating oil,
were expected to have decreased by about 1.4 million barrels
last week. NEWS
- Industrial action over the past three weeks has seen every
French refinery debilitated to some extent, hindering fuel
deliveries throughout the country and hurting European crude
prices as market players look to sell.
- Oil production in Iraq's semi-autonomous Kurdistan region
(KRI) is at risk after a halt in northern exports forced firms
operating there to cease output or divert crude to storage,
where capacity is limited.
- Russia has successfully redirected all its crude oil
exports affected by Western sanctions over Ukraine to "friendly"
countries, Energy Minister Nikolai Shulginov said on Tuesday,
but oil and gas output is still set to decline this year.
- Crude prices firmed on Tuesday, extending sharp gains from
the previous session amid supply disruption risks from Iraqi
Kurdistan and hopes that turmoil in banking is being contained. PRICES
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close
Spot Gas Oil 0.5% 94.23 3.08 3.38 91.15 GO 0.5 Diff -6.61 0 0.00 -6.61 Spot Gas Oil 0.25% 93.78 3.08 3.40 90.7 GO 0.25 Diff -7.06 0 0.00 -7.06 <GO25-SIN-DIF
>
Spot Gas Oil 0.05% 98.62 3.67 3.87 94.95 GO 0.05 Diff -2.21 0.6 -21.35 -2.81 <GO005-SIN-DI
F>
Spot Gas Oil 0.001% 102.19 3.14 3.17 99.05 GO 0.001 Diff 1.36 0.06 4.62 1.3 <GO10-SIN-DIF
>
Spot Jet/Kero 97.23 2.87 3.04 94.36 Jet/Kero Diff 0.46 0.04 9.52 0.42 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)
