Asia Distillates-Feb-March diesel timespreads near two-month highs

Reuters01-29
Asia Distillates-Feb-March diesel timespreads near two-month highs

SINGAPORE, Jan 29 (Reuters) - Asia's diesel market structures firmed further ahead of the month-end closing, though spot discussions were slightly limited on both window and offscreen for February, while jet fuel talks on the window were upbeat for a second session.

Traders were awaiting March spot discussions expected to start next week to gauge supply fundamentals as some regional refinery maintenance begin.

Cash differentials GO10-SIN-DIF gained again to premiums of 53 cents per barrel, reflecting the firmer paper market structure and higher bids on the window. However, a lack of trades was still evident.

At the close, the 10ppm sulphur gasoil refining margins GO10SGCKMc1 gained slightly to around $21.7 a barrel.

China-origin jet fuel were still being discussed at discounts of more than $1 a barrel for second-half February loading, several trade sources say, against a backdrop of lengthy supply expectations.

Next month's export plans remain at 2.2-2.4 million tons for the aviation and heating fuel, according to traders' estimates.

Regrade JETREG10SGMc1 continued trading at discounts of around $1 a barrel.

SINGAPORE CASH DEALS O/AS

- No gasoil deal, one jet fuel deal.

INVENTORIES

- U.S. crude stocks fell as exports surged last week, the Energy Information Administration said on Wednesday, while fuel inventories were up despite higher demand. EIA/S

- Singapore's distillate stocks were almost steady week on week, while total diesel imports surged and jet fuel exports declined slightly, according to official government data released on Thursday. O/SING1

REFINERY NEWS REF/OUT

- Mexico's Olmeca refinery, located in the Gulf port of Dos Bocas and run by state oil firm Pemex, halted its operations on Monday due to a power failure, according to two internal reports seen by Reuters.

NEWS

- U.S. refiner Citgo Petroleum has bought Venezuelan crude oil for the first time since 2019, when it severed ties with its parent, state-run oil firm Petroleos de Venezuela, two sources familiar with the matter told Reuters on Wednesday.

- Lukoil had agreed to sell most of its foreign assets, estimated to be worth around $22 billion, to U.S. private equity firm Carlyle Group CG.O pending approval from the U.S. government, Russia's No. 2 oil producer said on Thursday.

- Oil prices rose 1.5% on Thursday, extending gains for a third day, on increasing concerns the U.S. may carry out a military attack on key Middle Eastern producer Iran that could disrupt supply from the region. O/R

- Indian Oil Corp expects its annual diesel exports to rise sharply to up to 5 million metric tons from 2027 as it expands refining capacity, the company's head of marketing told reporters at the India Energy Week conference.

PRICES

MIDDLE DISTILLATES

CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.25%

88.23

1.88

86.35

GO25-SIN

GO 0.25 Diff

0.15

0.04

0.11

GO25-SIN-DIF

Spot Gas Oil 0.05%

88.27

1.88

86.39

GO005-SIN

GO 0.05 Diff

0.19

0.04

0.15

GO005-SIN-DIF

Spot Gas Oil 0.001%

88.61

1.92

86.69

GO10-SIN

GO 0.001 Diff

0.53

0.08

0.45

GO10-SIN-DIF

Spot Jet/Kero

87.69

1.86

85.83

JET-SIN

Jet/Kero Diff

0.64

0.04

0.60

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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