Asia Distillates-Markets little changed; China product quotas emerge
SINGAPORE, Sept 20 (Reuters) -Asia's middle distillates markets were little changed from the previous trading session, but weakness persisted for third straight week as broader macroeconomics weighed despite limited supply-demand fluctuations.
Beijing issued a third batch of product export quotas, which were almost in line with earlier expectations, keeping the year on year volumes little changed.
However these volumes were slightly more than earlier expectations and this weighed on overall paper discussion levels - though some analysts say it could be a boon for local refining runs.
Offers emerged from at least one northeast Asia refiner for more October spot cargoes, in line with earlier expectations, though the paper structure shape still remained shaky in the afternoon trading session.
More selling interest is likely to come from China refiners in the next week for October jet fuel shipments, one source said.
Refining margins GO10SGCKMc1 closed the trading session at 60 cents lower week on week at around $11.6 a barrel, after declining for the third straight session this trading week.
Spot market discounts GO10-SIN-DIF were little changed from the previous session at 46 cents a barrel, but these levels were still an improvement of more than 10 cents from a week earlier.
In jet fuel markets, regrade JETREG10SGMc1 extended losses for a third straight session and discounts widened to around 25 cents a barrel.
SINGAPORE CASH DEALS O/AS
- No deals for both fuels
INVENTORIES
- Independently held refined oil products stocks in storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by 2.1% in the week to Thursday, data from Dutch consultancy Insights Global showed. ARA/
REFINERY OUTAGES REF/OUT
- A catalytic cracker and two distillation units at Venezuela's Amuay refinery, the country's largest, have resumed operations following a power interruption earlier this month, five sources told Reuters this week.
NEWS
- China has released new oil export quotas for the rest of 2024, comprising 8 million metric tons of clean refined fuel and 1 million tons of marine fuel, two Chinese commodities consultancies and several trade sources said on Friday.
- China's fuel oil imports rebounded to three-month highs in August, while export volume for bunkering dropped to five-month lows, customs data showed on Friday.
- Oil refiners in Asia, Europe and the United States are facing a drop in profitability to multi-year lows, marking a downturn for an industry that had enjoyed surging returns post-pandemic and underlining the extent of the current slowdown in global demand.
- China's crude oil imports from Malaysia surged 31% in August from a year earlier, making it the country's second-largest supplier after Russia, customs data showed, bucking a broader trend of slowing Chinese imports.
- Indian refiners are jointly negotiating to purchase Russian oil for next year, a government source said on Thursday, with suppliers mostly using Russian insurance for crude priced above a $60 per barrel cap.
PRICES
MIDDLE DISTILLATES | ||||
CASH ($/BBL) | ASIA CLOSE | Change | Prev Close | RIC |
Spot Gas Oil 0.5% | 78.46 | -0.60 | 79.06 | GO-SIN |
GO 0.5 Diff | -6.37 | -0.01 | -6.36 | GO-SIN-DIF |
Spot Gas Oil 0.25% | 83.53 | -0.60 | 84.12 | GO25-SIN |
GO 0.25 Diff | -1.30 | -0.01 | -1.29 | GO25-SIN-DIF |
Spot Gas Oil 0.05% | 83.80 | -0.60 | 84.40 | GO005-SIN |
GO 0.05 Diff | -1.03 | -0.01 | -1.02 | GO005-SIN-DIF |
Spot Gas Oil 0.001% | 84.37 | -0.60 | 84.97 | GO10-SIN |
GO 0.001 Diff | -0.46 | -0.01 | -0.45 | GO10-SIN-DIF |
Spot Jet/Kero | 84.47 | -0.70 | 85.17 | JET-SIN |
Jet/Kero Diff | -0.10 | 0.02 | -0.12 | JET-SIN-DIF |
For a list of derivatives prices, including margins, please double click the RICs below. | ||||
Brent M1 | BRENTSGMc1 | |||
Gasoil M1 | GOSGSWMc1 | |||
Gasoil M1/M2 | GOSGSPDMc1 | |||
Gasoil M2 | GOSGSWMc2 | |||
Regrade M1 | JETREGSGMc1 | |||
Regrade M2 | JETREGSGMc2 | |||
Jet M1 | JETSGSWMc1 | |||
Jet M1/M2 | JETSGSPDMc1 | |||
Jet M2 | JETSGSWMc2 | |||
Gasoil 500ppm-Dubai Cracks M1 | GOSGCKMc1 | |||
Gasoil 500ppm-Dubai Cracks M2 | GOSGCKMc2 | |||
Jet Cracks M1 | JETSGCKMc1 | |||
Jet Cracks M2 | JETSGCKMc2 | |||
East-West M1 | LGOAEFSMc1 | |||
East-West M2 | LGOAEFSMc2 | |||
LGO M1 | LGOAMc1 | |||
LGO M1/M2 | LGOASPDMc1 | |||
LGO M2 | LGOAMc2 | |||
Crack LGO-Brent M1 | LGOACKMc1 | |||
Crack LGO-Brent M2 | LGOACKMc2 | |||
Reporting by Trixie Yap, Editing by Louise Heavens
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
