Asia Distillates-Lack of window deals persist; China-origin jet fuel on offer

Reuters
28 Feb
Asia Distillates-Lack of window deals persist; China-origin jet fuel on offer

SINGAPORE, Feb 28 (Reuters) - Asia's middle distillates markets closed Friday's trading session with a lack of window trades for the third straight day, though March jet fuel export sales remained upbeat from some key China oil majors.

Trading activity tapered down as the week went on with some March sales slowing from key refiners and markets awaiting a clearer direction for April's outlook.

China oil majors were the main sellers actively offering jet fuel spot cargoes for March shipment since the start of the week, with deals mostly at discounts of nearly $1 per barrel.

Separately, China-origin diesel exports for March loading are slated to fall slightly below 500,000 metric tons, while jet fuel volumes stayed elevated at more than 2 million tons.

The diesel east-west arbitrage narrowed week on week, as ICE gasoil prices slipped despite the ongoing bullish trading sentiment west.

At the week's close, 10ppm sulphur gasoil refining margins GO10SGCKMc1 were at $1.50 lower than a week earlier at slightly below $15 a barrel.

Cash differentials GO10-SIN-DIF clawed back earlier sessions' losses and closed the week at a premium of 30 cents per barrel.

Regrade JETREG10SGMc1 widened back to above $1.30 per barrel week on week, reflecting the slightly weaker trading stance for the aviation fuel against a backdrop of ample supplies from China.

SINGAPORE CASH DEALS O/AS

- No deals for both fuels

INVENTORIES

- Gasoil stocks independently held in the Amsterdam-Rotterdam-Antwerp $(ARA)$ refining and storage hub fell by over 1% on the week to 2.5 million metric tons on Thursday, data from Dutch consultancy Insights Global showed. ARA/

NEWS

- China's imports of Russian Far East crude and Iranian oil are set to rebound in March as non-sanctioned tankers, drawn by lucrative payoffs, joined the trade replacing vessels under U.S. embargo, trade sources and analysts said.

- OPEC+ is debating whether to raise oil output in April as planned or freeze it as its members struggle to read the global supply picture because of fresh U.S. sanctions on Venezuela, Iran and Russia, eight OPEC+ sources said.

- Indonesia's state energy firm Pertamina said a fire that broke out at its Cilacap refinery complex on Thursday has been extinguished and the refinery's operation is not affected, the company said.

- Oil prices eased on Friday, heading for their first monthly drop since November, as uncertainty over global economic growth and fuel demand from Washington's tariff threats and further signs of a U.S. economic slowdown outweighed supply concerns. O/R

- The cancellation of a license for Chevron CVX.N to operate in Venezuela could lead to the negotiation of a fresh agreement between the U.S. producer and state company PDVSA to export crude to destinations other than the United States, sources close to the talks said.

PRICES

MIDDLE DISTILLATES

CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.5%

83.49

0.89

82.60

GO-SIN

GO 0.5 Diff

-5.26

0.04

-5.30

GO-SIN-DIF

Spot Gas Oil 0.25%

88.05

0.89

87.16

GO25-SIN

GO 0.25 Diff

-0.70

0.04

-0.74

GO25-SIN-DIF

Spot Gas Oil 0.05%

87.82

0.89

86.93

GO005-SIN

GO 0.05 Diff

-0.93

0.04

-0.97

GO005-SIN-DIF

Spot Gas Oil 0.001%

89.05

0.90

88.15

GO10-SIN

GO 0.001 Diff

0.30

0.05

0.25

GO10-SIN-DIF

Spot Jet/Kero

88.25

0.52

87.72

JET-SIN

Jet/Kero Diff

0.87

-0.04

0.91

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 Devika Syamnath)

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

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