Asia Distillates-Diesel, jet fuel market backwardation ease; March nego next week eyed

Reuters01-30
Asia Distillates-Diesel, jet fuel market backwardation ease; March nego next week eyed

SINGAPORE, Jan 30 (Reuters) - Window spot activity for Asia's middle distillates turned quiet on Friday, amid easing timespreads, as traders awaited March discussions that begin in the next week.

The east-west price spreads widened slightly week on week, with values trading at discounts of $45 to $46 per metric ton on Friday, while freight rates on the Middle East-Europe route were at around $50 per ton.

Traders were expecting March selling interest to emerge next week and prop up spot trading liquidity.

Refining margins GO10SGCKMc1 rose to around $21.7 a barrel, up 50 cents from a week earlier.

Cash differentials GO10-SIN-DIF were up for much of the week, regaining ground to more than one-month highs of 55 cents per barrel on Friday.

Jet fuel markets were thinly discussed, with supply expectations still ample in the short run, given earlier offers from key China oil majors for February exports.

Regrade JETREG10SGMc1 discounts continue to deepen to around minus $1.20 a barrel.

SINGAPORE CASH DEALS O/AS

- No deal for gasoil or jet fuel

INVENTORIES

- Gasoline stocks held independently in the Amsterdam-Rotterdam-Antwerp $(ARA)$ refining and storage hub fell 6.4% on the week, data from Dutch consultancy Insights Global showed on Thursday. ARA/

NEWS

- The administration of President Donald Trump lifted some sanctions on Venezuela’s oil industry on Thursday to make it easier for U.S. companies to sell its crude, and said more restrictions on the country would be lifted soon.

- U.S. refiner Valero Energy on Thursday kicked off the earnings season for refiners in the United States with strong fourth-quarter profits, on a rebound in margins and higher throughput volume.

- Oil prices slipped on Friday on signs the U.S. may engage in dialogue with Iran over its nuclear programme, easing concerns of supply disruptions from a plausible U.S. attack; however, prices were on track for major monthly gains on rising geopolitical tensions. O/R

PRICES

MIDDLE DISTILLATES

CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.25%

88.40

0.17

88.23

GO25-SIN

GO 0.25 Diff

0.13

-0.02

0.15

GO25-SIN-DIF

Spot Gas Oil 0.05%

88.44

0.17

88.27

GO005-SIN

GO 0.05 Diff

0.17

-0.02

0.19

GO005-SIN-DIF

Spot Gas Oil 0.001%

88.82

0.20

88.61

GO10-SIN

GO 0.001 Diff

0.55

0.02

0.53

GO10-SIN-DIF

Spot Jet/Kero

87.78

0.09

87.69

JET-SIN

Jet/Kero Diff

0.60

-0.04

0.64

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 Diti Pujara)

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

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