Asia Distillates-Markets see choppy trade; Trafigura buys more gasoil
SINGAPORE, Sept 13 (Reuters) -Asia's middle distillates market momentum was mostly choppy through the trading week, though bearish supply-demand stayed as a prevailing theme ahead of more October refiner sales in the coming days.
Markets are still being discussed at discounts both on the window and on a spot front, two trade sources said, signalling a lack of stronger buying interest near-term.
October spot sales for both jet fuel and gasoil were slowly gaining momentum, with at least two more refiners from South Korea issuing their sale tenders.
Trafigura resumed buying activities on the open trading window, procuring end-September to early October cargoes.
Meanwhile, jet fuel markets could find a silver lining regionally until October due to shortcovering demand and stock replenishment from some importers amid refinery maintenance, especially in southeast Asia.
However, gains are likely to be capped by a closed arbitrage window to the west, one trade source said.
Analysts were also expecting the middle distillates complex to have bottomed out in the near-term.
Refining margins GO10SGCKMc1 for 10ppm sulphur gasoil closed the trading session at $12.30 per barrel, down by almost $1.50 a barrel as Friday derivative markets posted further declines despite oil gains.
Spot market discounts GO10-SIN-DIF for the fuel continued to hover at its four-year low mark of 61 cents a barrel, but activity was slightly muted compared with a week earlier.
Regrade JETREG10SGMc1 closed at the week's low of 30 cents a barrel, dipping 25 cents from a week earlier owing to slightly stronger rebounds in gasoil performance and cautiousness if Asian demand will be strong enough to buoy markets.
SINGAPORE CASH DEALS O/AS
- One 10ppm gasoil deal, no jet fuel deal
INVENTORIES
- Independently held refined oil products stocks in storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by 1.7% in the week to Thursday, data from Dutch consultancy Insights Global showed. ARA/
REFINERY NEWS REF/OUT
- Six oil refineries in Louisiana in the path of Hurricane Francine began recovering on Thursday from the storm's passage overnight, companies and sources familiar with operations at the plants said.
NEWS
- Indonesia plans to upgrade the quality of subsidised and polluting fuels, while also selling them to fewer vehicles, in a bid to improve the air quality in the capital Jakarta and other big cities, a senior government official said.
- Russia's offline primary oil refining capacity is set to jump 34% in September from August, according to Reuters calculations based on data from industry sources, due to technical outages, Ukrainian drone attacks, and seasonal maintenance.
PRICES
MIDDLE DISTILLATES | ||||
CASH ($/BBL) | ASIA CLOSE | Change | Prev Close | RIC |
Spot Gas Oil 0.5% | 77.02 | 0.24 | 76.78 | GO-SIN |
GO 0.5 Diff | -6.52 | -0.02 | -6.50 | GO-SIN-DIF |
Spot Gas Oil 0.25% | 82.05 | 0.24 | 81.81 | GO25-SIN |
GO 0.25 Diff | -1.49 | -0.02 | -1.47 | GO25-SIN-DIF |
Spot Gas Oil 0.05% | 81.70 | 0.46 | 81.24 | GO005-SIN |
GO 0.05 Diff | -1.84 | 0.20 | -2.04 | GO005-SIN-DIF |
Spot Gas Oil 0.001% | 82.93 | 0.24 | 82.69 | GO10-SIN |
GO 0.001 Diff | -0.61 | -0.02 | -0.59 | GO10-SIN-DIF |
Spot Jet/Kero | 83.04 | 0.18 | 82.86 | JET-SIN |
Jet/Kero Diff | -0.23 | -0.05 | -0.18 | 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 Maju Samuel
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.
