Asia Distillates-More than 1.2mln bbls traded on window; more refiner sales emerge

Reuters
11 Nov 2024
Asia Distillates-More than 1.2mln bbls traded on window; more refiner sales emerge

SINGAPORE, Nov 11 (Reuters) - Asia's middle distillates markets saw a record number of spot deals on the trading window for the first time this year, as selling pressures heated up with more than 1.2 million barrels being traded, while refiners emerged with more December spot sales.

A total of five deals were done on window for 10ppm sulphur gasoil, with Gunvor being the key seller. Vitol and Ampol were the major buyers during the trading session, with both traders in the market since last week for end-November to early December cargoes.

Sales could be brisk given the influx of swing supplies into Singapore since two weeks earlier for November arrival, amid expectations of rising supplies in northeast Asia soon.

November imports of Middle East and India-origin barrels of diesel/gasoil into Singapore are slated to hit multi-year highs, LSEG shiptracking data showed.

In tenders, South Korea's GS Caltex kickstarted their December spot sales, offering at least four 300,000-barrel cargoes. SK Energy was also in the market to sell two 300,000-barrel cargoes. MDIS/TENDA

Paper markets however were thinly discussed on window.

Refining margins GO10SGCKMc1 clawed back some losses and rebounded to around $15 a barrel, tracking the slight tick-up in paper markets.

Cash differentials GO10-SIN-DIF slipped by 7 cents, declining as deal levels were lower amid ready selling interest.

Meanwhile, some traders were still puzzled on the strengthening regrade JETREG10SGMc1, though the slight weakness in gasoil fundamentals could be the driver.

The spread shot back up to $1 a barrel, as some near-term buying activities in the paper markets also proved supportive

SINGAPORE CASH DEALS O/AS

- Five gasoil deals, two jet fuel deals

NEWS

- U.S. oil refiners this quarter expect to run their plants at above 90% of their crude processing capacity on low inventories and improving demand for gasoline and diesel, executives and industry experts said.

- Oil prices were little changed on Monday as the threat of supply disruptions from a U.S. storm eased and after China's stimulus plan disappointed investors seeking fuel demand growth in the world's No. 2 oil consumer. O/R

- U.S. renewable fuel credits rose to multi-month highs on Friday on increased demand from refiners trying to comply with mandates and higher prices for soyoil, surprising traders who expected Donald Trump's reelection as U.S. president to weigh on the market.

- Saudi Arabia's crude oil supply to China is set to fall to about 36.5 million barrels in December, trade sources said on Monday, on weak demand from the world's largest importer.

PRICES

MIDDLE DISTILLATES

CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.5%

82.58

-0.88

83.45

GO-SIN

GO 0.5 Diff

-5.59

0.01

-5.60

GO-SIN-DIF

Spot Gas Oil 0.25%

88.50

-0.88

89.37

GO25-SIN

GO 0.25 Diff

0.33

0.01

0.32

GO25-SIN-DIF

Spot Gas Oil 0.05%

88.80

-0.88

89.68

GO005-SIN

GO 0.05 Diff

0.63

0.01

0.62

GO005-SIN-DIF

Spot Gas Oil 0.001%

89.09

-0.96

90.04

GO10-SIN

GO 0.001 Diff

0.92

-0.07

0.99

GO10-SIN-DIF

Spot Jet/Kero

89.53

-0.88

90.41

JET-SIN

Jet/Kero Diff

0.38

-0.05

0.43

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 Shreya Biswas)

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

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