Asia Distillates-June refiner sales upbeat; cash diffs slip to three-week low

Reuters
16 May
Asia Distillates-June refiner sales upbeat; cash diffs slip to three-week low

SINGAPORE, May 16 (Reuters) - Asia's middle distillates markets saw a flurry of spot activity for June shipments this week, though window cash differentials slipped on Friday amid a weaker derivative market structure.

The 500ppm sulphur gasoil markets saw a slight uptick in spot activity and overall buying interest, especially within the northeast Asia region, multiple trade sources said.

Demand support came from low-sulphur marine gasoil markets, especially from China, given the stronger profit margins from procuring U.S.-denominated cargoes compared with yuan-denominated cargoes.

Supplies came in the form of Taiwan- and South Korea-origin barrels, with at least five cargoes being sold by refiners at discounts averaging slightly more than $1 a barrel. MDIS/TENDA

Jet fuel wise, the Asia-U.S. west coast arbitrage price spread remained barely open and was not very profitable for traders, with most Asian cargoes to flow within the region for now.

Refining margins GO10SGCKMc1 remained at nearly $17 a barrel, little changed from the previous trading session.

On the trading window, lower-priced offers were both readily available for jet fuel and 10ppm sulphur gasoil, weighing on cash differentials for both products.

The 10ppm sulphur gasoil cash differentials GO10-SIN-DIF slipped to premiums of 63 cents per barrel, a three-week low.

Regrade JETREG10SGMc1 widened to around 85 cents a barrel as June gasoil paper markets traded higher than the past few sessions.

SINGAPORE CASH DEALS O/AS

- No deals for both fuels

INVENTORIES

- Gasoil stocks independently held in the Amsterdam-Rotterdam-Antwerp refining and storage hub, which include diesel, were higher by 6% at 2.22 million tons on higher cargo imports from the Middle East.

NEWS

- U.S. oil producer Chevron Corp CVX.N and several European companies are in talks with the Trump administration to obtain authorizations to keep their stakes in joint ventures with Venezuela's state-run PDVSA, three sources close to the matter said.

- A U.S. and biofuel coalition recommended that the Environmental Protection Agency propose federal mandates for biomass diesel blending for 2026 at 5.25 billion gallons, which would be a significant increase from previous mandates, two sources familiar with the matter said.

- Black Sea CPC Blend crude oil exports are pencilled in at around 1.6 million-1.7 million barrels per day in June, five trading sources with knowledge of the month's loadings told Reuters.

PRICES

MIDDLE DISTILLATES

CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.5%

74.52

-0.34

74.86

GO-SIN

GO 0.5 Diff

-5.37

-0.07

-5.30

GO-SIN-DIF

Spot Gas Oil 0.25%

78.20

-0.34

78.54

GO25-SIN

GO 0.25 Diff

-1.69

-0.07

-1.62

GO25-SIN-DIF

Spot Gas Oil 0.05%

79.69

-0.34

80.03

GO005-SIN

GO 0.05 Diff

-0.20

-0.07

-0.13

GO005-SIN-DIF

Spot Gas Oil 0.001%

80.52

-0.40

80.92

GO10-SIN

GO 0.001 Diff

0.63

-0.13

0.76

GO10-SIN-DIF

Spot Jet/Kero

79.04

-0.25

79.28

JET-SIN

Jet/Kero Diff

0.00

0.01

-0.01

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 Mrigank Dhaniwala)

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

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