Asia Distillates-Window activity remains slow; Feb spot sales still underway

Reuters01-27
Asia Distillates-Window activity remains slow; Feb spot sales still underway

SINGAPORE, Jan 27 (Reuters) - Asia's diesel markets were little changed against a backdrop of prevailing thin window trading activity, with some February sales still ongoing by the sidelines.

A handful of February spot cargoes were still readily available for end-month loading from northeast Asia, with discussions underway and mostly remaining in the discounted territory.

Earlier support from ICE gasoil futures dissipated slightly, weighing on paper markets, though the east-west price spreads narrowed slightly to discounts of $44 per metric ton.

Refining margins GO10SGCKMc1 eased back to one-week lows of around $20.85 a barrel, reversing most of previous sessions' gains.

Cash differentials GO10-SIN-DIF were rolled over at premiums of 29 cents a barrel, given little changes in the paper market structure and persistently thin spot activity.

Meanwhile, more jet fuel cargoes were seemingly available from a handful of regional refiners for end-February shipment, as traders turned cautious on the supply side.

However, heating demand fundamentals were still firm in some regions experiencing colder than expected weather, capping overall weakness though diesel still remains firmer in comparison, one trade source said.

Regrade JETREG10SGMc1 held its ground and fluctuated at discounts of 60-70 cents a barrel.

SINGAPORE CASH DEALS O/AS

- No deal for gasoil or jet fuel

INVENTORIES

- U.S. crude oil and gasoline stockpiles were expected to have risen last week, while distillate inventories likely fell, a preliminary Reuters poll showed on Monday. EIA/S

NEWS

- U.S. oil producers lost up to 2 million barrels per day, or up to 15%, of the country's production over the weekend, analysts and traders estimated, as a winter storm swept across the country, straining energy infrastructure and power grids.

- Indian oil refiners are only being offered small volumes of Venezuelan crude as most supply is heading to the United States, four refining executives said on Tuesday, slowing the return of the South American supply to the world's third-largest importer.

- State-owned PetroChina has told its traders not to buy or trade Venezuelan crude since Washington took control of the OPEC producer's oil exports this month, two trading executives familiar with the situation said.

- The head of Abu Dhabi National Oil Company (ADNOC) said global oil demand will remain above 100 million barrels per day through 2040, while demand for both liquefied natural gas $(LNG)$ and electricity will grow by 50% or more.

PRICES

MIDDLE DISTILLATES

CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.25%

83.80

-1.74

85.55

GO25-SIN

GO 0.25 Diff

0.03

0.00

0.03

GO25-SIN-DIF

Spot Gas Oil 0.05%

83.84

-1.74

85.59

GO005-SIN

GO 0.05 Diff

0.07

0.00

0.07

GO005-SIN-DIF

Spot Gas Oil 0.001%

84.06

-1.74

85.81

GO10-SIN

GO 0.001 Diff

0.29

0.00

0.29

GO10-SIN-DIF

Spot Jet/Kero

83.86

-1.72

85.58

JET-SIN

Jet/Kero Diff

0.74

0.01

0.73

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 Shailesh Kuber)

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

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