Asia's middle distillates markets were thinly traded on the window again, though paper market structures weakened slightly and spot October refiner sales remained underway.
Front-month supply fundamentals are likely to still be supported for now as swing suppliers continue to pivot their diesel cargo flows west, given the better margins.
The diesel east-west spreads for October continued to hover at a discount of $42 per ton or more, trade sources say.
So far only two to three medium-range-sized vessels from India and the Middle East are heading to southeast Asia until early October arrival, LSEG shiptracking data showed.
The only wildcard could be China's export volumes, given the firm export margins now, with some oil majors already starting October spot sales since late last week, several traders say.
October spot offers from northeast Asia were still prevalent, with a handful of refiners in discussion for jet fuel cargoes.
At the market's close, refining margins (GO10SGCKMc1) surged to nearly two-month highs of $20.4 a barrel.
Cash differentials (GO10-SIN-DIF) slipped to reflect the weaker market backwardation and lower-priced offers for October.
For jet fuel, the arbitrage price spread between Asia and the U.S. west coast stayed shaky from last week, with markets receiving limited support from this.
Regrade (JETREG10SGMc1) closed the trading session slightly wider at discounts of around $1.70 a barrel.
SINGAPORE CASH DEALS
- No deals for gasoil or jet fuel
INVENTORIES
- Middle distillates stocks held at Fujairah Oil Industry Zone slipped to one-month lows of 1.65 million barrels for the week ended September 15, according to industry information service S&P Global Commodity Insights.
- U.S. crude and gasoline stocks fell, while distillate stocks rose last week, market sources said, citing American Petroleum Institute figures on Tuesday.
NEWS
- Shell said it was adjusting operational hours and staffing levels at some of its gas stations in Indonesia as a result of supply shortages, as the government insisted they would not be granted extra import quotas and should source fuel from the state-run Pertamina.
- China has issued 8.395 million metric tons of export quotas for gasoline, jet fuel and diesel in its third batch of allowances this year, trade sources said.
- Oil prices eased on Wednesday, after rising more than 1% in the previous session, though ongoing geopolitical jitters provided a floor for the market, with traders eyeing an expected interest-rate cut from the U.S. Federal Reserve later in the day.
PRICES
MIDDLE DISTILLATES
CASH ($/BBL)
ASIA CLOSE
Change
Prev Close
RIC
Spot Gas Oil 0.5%
84.42
2.58
81.84
(GO-SIN)
GO 0.5 Diff
-5.25
-0.05
-5.20
(GO-SIN-DIF)
Spot Gas Oil 0.25%
88.79
2.58
86.21
(GO25-SIN)
GO 0.25 Diff
-0.88
-0.05
-0.83
(GO25-SIN-DIF)
Spot Gas Oil 0.05%
89.69
2.58
87.11
(GO005-SIN)
GO 0.05 Diff
0.02
-0.05
0.07
(GO005-SIN-DIF)
Spot Gas Oil 0.001%
90.66
2.53
88.12
(GO10-SIN)
GO 0.001 Diff
0.98
-0.10
1.08
(GO10-SIN-DIF)
Spot Jet/Kero
88.56
2.36
86.20
(JET-SIN)
Jet/Kero Diff
0.50
0.03
0.47
(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)