SINGAPORE, Nov 18 (Reuters) - Asia's diesel markets firmed on Tuesday, with margins back at two-year highs, as bullish sentiment drove the 2%-3% gain in ICE gasoil futures prices in the afternoon trading session, although spot window activity slowed slightly.
Bullish sentiment could have been driven by limited import arrivals heading into northwest Europe markets in December, two trade sources say.
In Asia, front month spot activity remains supported by the firm supply-demand fundamentals, but could ease by first half of December as some refineries gradually resume production after maintenance.
China diesel exports are still estimated at below 400,000 metric tons next month, with jet fuel at slightly above 2.2 million tons, traders say.
Meanwhile some diesel term negotiations in northeast Asia were still in progress, with at least one more refiner starting to offer in line with earlier expectations.
The 10ppm sulphur gasoil refining margins GO10SGCKMc1 rebounded back to two-year highs of $29 a barrel.
Cash differentials GO10-SIN-DIF rose to nearly $3 a barrel, hovering at two-year high levels.
Jet fuel spot activity for December shipments were still discussed on a premium basis linked to free on board (FOB) Singapore quotes, several trade sources said.
Refining margins for the aviation fuel also hovered at two-year high levels of nearly $30 barrel.
Regrade JETREG10SGMc1 extended gains and went further into premiums of 40-50 cents per barrel
SINGAPORE CASH DEALS O/AS
- No deals for gasoil or jet fuel
INVENTORIES
- U.S. crude oil and distillate stockpiles were expected to have fallen last week, while gasoline inventories likely rose, a preliminary Reuters poll showed on Monday. EIA/S
REFINERY NEWS REF/OUT
- Vietnam's largest refiner Nghi Son Refinery and Petrochemical (NSRP) is continuing to operate its 200,000-barrel per day refinery at 100%-105% capacity despite some ongoing maintenance at derivative units, a refinery spokesperson said.
NEWS
- Chinese refiner Yanchang Petroleum has bought 3 million barrels of crude from the United Arab Emirates and Kazakhstan for January arrival, several trade sources said, after suspending Russian oil purchases over concerns about Western sanctions.
- China's exports of refined oil products in October rose 14% year-on-year and fell 12.1% from September, customs data showed on Tuesday.
- U.S. oil major Chevron CVX.N is studying options to buy global assets of sanctioned Russian oil firm Lukoil LKOH.MM, five sources familiar with the process told Reuters on Monday.
PRICES
MIDDLE DISTILLATES | ||||
CASH ($/BBL) | ASIA CLOSE | Change | Prev Close | RIC |
Spot Gas Oil 0.25% | 93.38 | 1.44 | 91.94 | GO25-SIN |
GO 0.25 Diff | -0.32 | 0.15 | -0.47 | GO25-SIN-DIF |
Spot Gas Oil 0.05% | 94.61 | 1.43 | 93.18 | GO005-SIN |
GO 0.05 Diff | 0.91 | 0.15 | 0.76 | GO005-SIN-DIF |
Spot Gas Oil 0.001% | 96.69 | 1.43 | 95.26 | GO10-SIN |
GO 0.001 Diff | 2.99 | 0.15 | 2.84 | GO10-SIN-DIF |
Spot Jet/Kero | 97.12 | 1.84 | 95.28 | JET-SIN |
Jet/Kero Diff | 2.88 | 0.32 | 2.57 | 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 Eileen Soreng)
((trixie.yap@thomsonreuters.com;))
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