Asia Distillates-Window liquidity thins; traders eye April offers from China

Reuters
03-18
Asia Distillates-Window liquidity thins; traders eye April offers from China

SINGAPORE, March 18 (Reuters) - Asia's middle distillates markets were thinly discussed after yesterday's flurry of activity, with the front-month east-west remaining narrow though ICE gasoil futures continued the uptrend.

Traders were eyeing offers from China refiners to emerge soon, given that it was past mid-month and April sales activity should start soon.

Export estimates for April-loading diesel from China were similar to March at around 400,000 metric tons, while jet fuel volumes were around 2.2 million tons in total.

Refining margins GO10SGCKMc1 slipped for a second straight session this week to around $13.30 a barrel amid a late afternoon crude market surge.

Window activity stayed thin, with a lack of bids for 10ppm sulphur gasoil.

Cash differentials GO10-SIN-DIF closed the trading session 3 cents lower, tracking a narrower backwardation in April-May paper timespreads.

Meanwhile, for jet fuel, the arbitrage spread between Asia and the U.S. West Coast widened significantly since the previous trading session, with traders expecting some discussions to emerge soon, given its profitability.

Regrade JETREG10SGMc1 for April was however little changed at discounts of around $1.2 a barrel.

SINGAPORE CASH DEALS O/AS

- No deals for both fuels

INVENTORIES

- U.S. crude oil stockpiles were expected to have risen last week, while distillate and gasoline inventories likely fell, a preliminary Reuters poll showed on Monday. EIA/S

NEWS

- Only one tank filled with jet fuel was damaged after the U.S. military-contracted tanker that was transporting a shipment was struck by a cargo ship off England's northeast coast, U.S. logistics firm Crowley said.

- Venezuela's state-run PDVSA has put together three operational scenarios as part of a plan to continue producing and exporting oil at its largest joint venture with Chevron CVX.N once a license for the U.S. major to operate in the country expires next month, according to a company document seen by Reuters on Monday.

- Chevron bought about 4.99% of Hess Corp's common shares this year, reflecting its confidence in completing the planned acquisition of Hess, the oil giant said in a regulatory filing on Monday.

- Oil prices rose more than 1% on Tuesday to their highest levels since the beginning of the month, supported by instability in the Middle East as well as China's plans for more economic stimulus. O/R

- Yemen's Houthis will not "dial down" their action against Israeli shipping in the Red Sea in response to U.S. military pressure or appeals from the group's allies such as Iran, the Yemeni militant group's foreign minister said.

PRICES

MIDDLE DISTILLATES

CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.5%

80.44

0.47

79.97

GO-SIN

GO 0.5 Diff

-5.33

-0.03

-5.30

GO-SIN-DIF

Spot Gas Oil 0.25%

85.00

0.47

84.53

GO25-SIN

GO 0.25 Diff

-0.77

-0.03

-0.74

GO25-SIN-DIF

Spot Gas Oil 0.05%

84.77

0.47

84.30

GO005-SIN

GO 0.05 Diff

-1.00

-0.03

-0.97

GO005-SIN-DIF

Spot Gas Oil 0.001%

86.00

0.47

85.53

GO10-SIN

GO 0.001 Diff

0.23

-0.03

0.26

GO10-SIN-DIF

Spot Jet/Kero

84.77

0.55

84.22

JET-SIN

Jet/Kero Diff

0.20

-0.01

0.21

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 Tasim Zahid)

((trixie.yap@thomsonreuters.com;))

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