Concerns remained on burgeoning supplies within the region, with some shoretank storage facilities in Singapore at high levels, a handful of market sources said.
Most are having high stocks of 500 ppm sulphur gasoil, one of the sources said.
Offers in the paper swaps and physical markets stayed prevalent throughout the afternoon trading session for prompt parcels, although some buying interest at lower prices remained - as the market was at more-than-a-year low levels. A portion of the market is still hoping to buy competitively priced cargoes since storing cargoes now will make sense given the slight switch in price structure, one broker said.
Weakness in European diesel cracks weighed further on the Asian market, with the export arbitrage window on paper still closed.
Cash differentials for 10 ppm sulphur gasoil cargoes fell by more than 50% on day, reflecting the weakness in the market and strong selling interest.
Jet fuel refining margins likewise fell, but at a slower pace, to $14.57 a barrel with regrade narrowing slightly to a discount of $1.20 a barrel.
SINGAPORE CASH DEALS - One gasoil deal, no jet fuel deal.
INVENTORIES - U.S. crude oil and gasoline inventories rose last week, while distillate stockpiles fell, according to market sources citing American Petroleum Institute figures on Tuesday. Distillate stocks fell by about 2 million barrels, according to the sources, who spoke on condition of anonymity. - Stockpiles of middle distillates at Fujairah Oil Industry Zone fell to a one-month low of 2.494 million barrels for the week ended April 10, according to industry information service S&P Global Commodity Insights. NEWS - Non-fossil fuels are expected to supply 18.3% of China's total energy consumption this year, with wind and solar power accounting for 15.3% of the country's power use, a policy document released by the National Energy Administration (NEA) showed on Wednesday.
- Oil prices steadied Wednesday as the market waited for U.S. inflation data later in the day that will likely influence the Federal Reserve's policy on future interest rate hikes. - Benchmark Northwest European diesel refining margins dropped to $17.7 a barrel on Wednesday, their lowest since Feb. 25, 2022, a day after Russia launched its invasion of Ukraine, data showed.
PRICES
MIDDLE DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close
Spot Gas Oil 0.5% 92.55 -0.77 -0.83 93.32 GO 0.5 Diff -7.38 -0.21 2.93 -7.17 Spot Gas Oil 0.25% 92.1 -0.77 -0.83 92.87 GO 0.25 Diff -7.83 -0.21 2.76 -7.62 <GO25-SIN-DIF
>
Spot Gas Oil 0.05% 97.6 -0.77 -0.78 98.37 GO 0.05 Diff -2.33 -0.21 9.91 -2.12 <GO005-SIN-DI
F>
Spot Gas Oil 0.001% 100.02 -0.81 -0.80 100.83 GO 0.001 Diff 0.09 -0.25 -73.53 0.34 <GO10-SIN-DIF
>
Spot Jet/Kero 98.95 0.03 0.03 98.92 Jet/Kero Diff 0.18 -0.05 -21.74 0.23 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)
