Asia Distillates-Markets weaken; more Feb refiner sales emerge

Reuters
27 Jan
Asia Distillates-Markets weaken; more Feb refiner sales emerge

SINGAPORE, Jan 27 (Reuters) - Asia's middle distillates markets were overall weaker, reflecting the declines in swap discussions and the open trading window, even as February sales activity continued from various refiners.

February refiner sale discussions were still hovering in the discounted territory, with the latest South Korea-origin barrels being sold at discounts of 80-90 cents per barrel.

Likewise for jet fuel, February sales were mostly done at discounts of more than 50 cents a barrel.

Meanwhile, swing suppliers in India and the Middle East started off their February spot sale tenders, as KPC, Nayara Energy and MRPL emerged from the sidelines.

Refining margins GO10SGCKMc1 kickstarted the short working week lower, hovering again at three-month lows given as weakness for February swaps prices continued.

Complex refining margins however recovered to two-week highs of more than $2 per barrel, reflecting the weakness in crude prices in comparison.

Cash differentials GO10-SIN-DIF closed the trading session at 72 cents a barrel, as selling interest rose for early February cargoes.

Regrade JETREG10SGMc1 discounts went to their narrowest in one month, reflecting the weakness in gasoil markets.

SINGAPORE CASH DEALS O/AS

- One gasoil deal, no jet fuel deals

REFINERY NEWS REF/OUT

- TotalEnergies TTEF.PA shut the small crude distillation unit (CDU) because of the outage of a coker at its 238,000-barrel-per-day (bpd) Port Arthur, Texas, refinery, people familiar with plant operations said on Friday.

- CVR Energy CVI.N said on Friday its 132,000 barrels-per-day refinery in Coffeyville, Kansas, has begun planned turnaround work following a fire at the plant's naphtha hydrotreater on Tuesday.

NEWS

- The U.S. and Colombia pulled back from the brink of a trade war on Sunday after the White House said the South American nation had agreed to accept military aircraft carrying deported migrants.

- China's manufacturing activity unexpectedly contracted in January, an official factory survey showed on Monday, its weakest since August, keeping alive calls for stimulus in the world's second-largest economy.

- Oil prices slipped on Monday after U.S. President Trump called on OPEC to reduce prices following the announcement of wide-ranging measures to boost U.S. oil and gas output in his first week in office. O/R

- Top oil exporter Saudi Arabia may raise crude prices for Asian buyers in March to their highest in more than a year after benchmark prices spiked on higher demand from China and India as U.S. sanctions disrupted Russian supply, traders said on Monday.

PRICES

MIDDLE DISTILLATES

CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.5%

87.30

-1.65

88.96

GO-SIN

GO 0.5 Diff

-5.28

-0.03

-5.25

GO-SIN-DIF

Spot Gas Oil 0.25%

92.67

-1.65

94.33

GO25-SIN

GO 0.25 Diff

0.09

-0.03

0.12

GO25-SIN-DIF

Spot Gas Oil 0.05%

92.88

-1.65

94.54

GO005-SIN

GO 0.05 Diff

0.30

-0.03

0.33

GO005-SIN-DIF

Spot Gas Oil 0.001%

93.31

-1.80

95.10

GO10-SIN

GO 0.001 Diff

0.72

-0.17

0.90

GO10-SIN-DIF

Spot Jet/Kero

92.88

-0.83

93.71

JET-SIN

Jet/Kero Diff

1.00

0.07

0.94

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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