Asia Distillates-Trading momentum upbeat; jet fuel deals emerge for first time in 2 months

Reuters
03 Apr
PBF Energy Inc-1.30%Post-market

SINGAPORE, April 3 (Reuters) - Asia's middle distillates markets continued to record a bout of fast-paced trading activity on the window, with jet fuel deals emerging for the first time in two months, while the arbitrage for these exports to the U.S. West Coast stayed widely open.

Meanwhile, prompt April diesel sales were still ongoing, with discussions at discounts of around $1 a barrel to FOB Singapore quotes, similar to earlier discussion levels a week ago.

The 10-ppm sulphur gasoil refining margins GO10SGCKMc1 eased back to one-week lows, taking a cue from softer paper prices, but a faster drop in crude futures limited overall market weakness.

Paper markets were still brimming with activity, contributing to the overall upbeat market momentum.

Cash differentials GO10-SIN-DIF closed slightly higher at 19 cents per barrel, though a buy-sell gap hindered deals.

For jet fuel, the arbitrage to the U.S. West Coast for Asia-loading barrels stayed open but once again shipping inquiries were scant.

Spot premiums for jet fuel came under pressure as lower-priced offers were readily available, with deals for April mostly done at lower prices from the previous trading session.

Regrade JETREG10SGMc1 was narrower at the market's close, hovering at discounts of around 95 cents per barrel.

SINGAPORE CASH DEALS O/AS

- No deals for

INVENTORIES

- U.S. crude oil stockpiles rose sharply last week as refinery utilization declined and imports rose with the market bracing for new tariffs from the Trump administration, the Energy Information Administration said on Wednesday. EIA/S

- Singapore's middle distillates stockpiles slipped back to nearly 9 million barrels, hovering at a two-month low, despite declines in net exports of both diesel and jet fuel, official data showed on Thursday. O/SING1

REFINERY NEWS REF/OUT

- A fire at PBF Energy's PBF.N Martinez, California refinery that injured one person, has been put out, the refinery said.

- Motiva Enterprises [RIC:RIC:MOTIV.UL] plans to complete by April 10 the restart of the gasoline-producing fluidic catalytic cracker at its 626,000-barrel-per-day Port Arthur, Texas refinery, said people familiar with plant operations on Wednesday.

NEWS

- Oil loadings from Russia's western ports over April 1-8 are set to rise by around 90,000 barrels per day (bpd) versus the same period in March to reach some 1.7 million bpd, the data provided by trade sources and Reuters calculations showed.

- A meeting of eight top ministers of OPEC+ will likely keep the oil output policy, which calls for gradual oil output hikes from April, unchanged, two OPEC+ sources said on Thursday.

- Oil prices fell by over 3% on Thursday after U.S. President Donald Trump announced sweeping new tariffs which investors worry will enflame a global trade war that will curtail economic growth and limit fuel demand. O/R

- Asia's oil hub of Singapore is set to receive more fuel oil from Nigeria's Dangote refinery in April, following a jump in arrival volumes last month, according to trade sources.

PRICES

CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.5%

81.64

-1.57

83.21

GO-SIN

GO 0.5 Diff

-5.41

0.02

-5.43

GO-SIN-DIF

Spot Gas Oil 0.25%

86.22

-1.57

87.79

GO25-SIN

GO 0.25 Diff

-0.83

0.02

-0.85

GO25-SIN-DIF

Spot Gas Oil 0.05%

85.99

-1.57

87.56

GO005-SIN

GO 0.05 Diff

-1.06

0.02

-1.08

GO005-SIN-DIF

Spot Gas Oil 0.001%

87.24

-1.57

88.81

GO10-SIN

GO 0.001 Diff

0.19

0.02

0.17

GO10-SIN-DIF

Spot Jet/Kero

86.08

-1.62

87.70

JET-SIN

Jet/Kero Diff

0.11

-0.05

0.16

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 Vijay Kishore)

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

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

no data

No relevant data is available

If the download button clicks without skipping, click on the top right menu and select "Open in Browser."