Asian 10ppm sulphate gas oil markets saw limited change due to low trading liquidity in both physical and swaps, with traders awaiting clearer supply prospects in the fourth quarter.
Refining margins GO10SGCKMc1 for 10ppm sulfur gas oil were little changed given limited activity in swap and futures markets and were slightly above US$32 per barrel as some participants unwound their positions at the end of the month.
GO10-SIN-DIF spot premiums for fuel fell 5 cents a barrel reflecting a lack of strong buying interest, although there were also few sellers.
Support came primarily from stable cracks in North West Europe markets as the open market continued to be characterized by low levels of activity.
Part of the market remained positive amid tight supply conditions as significant production outages are expected in India and the Middle East as maintenance season begins in September.
However, there was a lack of clarity about China’s export volumes in September, as no new quotas had yet been announced.
Kerosene (JETSGCKMc1) refining margins edged up, reaching nearly $31 a barrel as summer demand continued to support the market.
“Our expectations for strong summer air travel came true, with strong fuel burn helping to support fuel margins across the board as Brent (prices) spent much of the second quarter of 2003 in a range-bound state,” analysts at BMI Research said in a customer message.
However, BMI analysts expect jet fuel price increases to ease in the coming months as the surge in demand from the northern hemisphere summer travel season eases.
The JETREG10SGMc1 re-rating price dropped to approximately $1.40 per barrel, reflecting slightly stronger kerosene performance.
SINGAPORE CASH OFFERS O/AS
– No deals on petrol or kerosene.
STOCKS
– USOILD=ECI distillate inventories in the US, which includes diesel and heating oil, rose 900,000 barrels to 116.7 million barrels, while an increase of 200,000 barrels was expected, data from the Energy Information Administration showed on Wednesday.
– Singapore’s middle distillate inventories rose by more than 1 million barrels (134,222 tonnes) week-on-week, hitting a 19-week high as the impact of lower jet fuel/kerosene outflows outweighed a rise in gasoil net exports, official data showed on Thursday.
Refinery failure REF/OUT
– Both crude oil distillation plants were shut down Wednesday at TotalEnergies’ 238,000 barrels per day (bpd) refinery in Port Arthur, Texas, people familiar with plant operations said.
– Japanese company Cosmo Oil, a unit of Cosmo Energy Holdings Co Ltd 5021.T, shut down the 100,000 barrels per day (bpd) crude oil distillation (CDU) unit at its Sakai refinery on August 18 for scheduled maintenance, a company spokesman said on Thursday.
– Japan’s largest refiner Eneos Corp said Thursday that crude oil distillation units (CDUs) at its Mizushima refinery in the west of the country are operating normally after a fire the previous day.
NEWS
– India’s diesel exports to Singapore are likely to hit a 19-month high in August, topping 330,000 tonnes, buoyed by cheaper freight rates and low inventories in Asia’s oil hub, traders and analysts said.
— The third phase of China’s largest single coastal oil storage facility was completed and put into operation on Wednesday at the port of Qingdao in eastern Shandong province, state media company China News reported.
– Oil prices eased on Thursday as disappointing economic data from major economies disappoint and investors await Friday’s speech by Federal Reserve Chair Jerome Powell for clues on interest rates.
Source: Reuters (reporting by Trixie Yap)
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