SINGAPORE, June 16 (Reuters) - Asia's middle distillates markets extended gains on the pricing front amid geopolitical conflict in the Middle East, with diesel margins at near 1-year highs and prices up 2-3%, though window trading liquidity started the week thin.
Paper markets continued their incline, reflecting the gains in crude markets due to concern around the conflict's impact on Middle East supplies.
The east-west price spread widened to discounts of more than $30 per metric ton, its widest since the end of February.
More than 2 million metric tons of diesel are typically shipped out of the Strait of Hormuz region per month, while more than 1.3 million tons of jet fuel and kerosene is exported from sellers in that region, Kpler shiptracking data showed.
These exports take up about 10% and 20% of the total volumes globally, the data added.
Clean product tankers, however, are still prowling the Straits of Hormuz for now, shiptracking data from Kpler and LSEG showed, with more than 10 ships in the area carrying middle distillates.
Refining margins GO10SGCKMc1 gained to slightly above $17.9 a barrel, its highest since early July last year.
Meanwhile on the trading window, only bids were present and offers were scant - with jet fuel discussions remaining thin. The 10ppm sulphur gasoil cash differentials GO10-SIN-DIF jumped to 75 cents per barrel, reflecting the steeper paper market backwardation and firmer bids.
Regrade JETREG10SGMc1 widened to more than discounts of $1.40 per barrel.
SINGAPORE CASH DEALS O/AS
- No deals for gasoil and jet fuel
REFINERY NEWS REF/OUT
- A fire on the resid hydrotreater (RHU) was nearly extinguished on Saturday afternoon at Marathon Petroleum Corp's MPC.N 631,000 barrel-per-day (bpd) Galveston Bay Refinery in Texas City, Texas, said people familiar with plant operations.
NEWS
- China's crude oil throughput declined by 1.8% in May from a year earlier to the lowest level since August, official data showed on Monday, as maintenance at both state-owned and independent refineries curbed operations.
- The importance of oil and gas can't be underestimated at times when conflicts occur, something that was currently being seen, the head of Saudi oil giant Aramco 2222.SE told an energy conference on Monday.
- U.S. ultra-low sulfur diesel futures HOc1 hit the highest level since February last Friday, outpacing gains in oil and gasoline as analysts warned that diesel supply is the most exposed to the conflict in the Middle East.
- India is reviewing the global oil supply situation on a daily basis and has enough energy stocks, federal oil minister Hardeep Singh Puri said on Monday.
- The costs of chartering tankers to move oil from the Middle East to Asia have climbed and ship bookings have slowed as the Israel-Iran conflict fuels worries of potential disruptions, industry sources told Reuters on Monday.
- Oil prices were volatile on Monday, after surging 7% on Friday, as renewed strikes by Israel and Iran over the weekend increased concerns that the conflict could widen across the Middle East and significantly disrupt oil exports from the region. O/R
PRICES
MIDDLE DISTILLATES | ||||
CASH ($/BBL) | ASIA CLOSE | Change | Prev Close | RIC |
Spot Gas Oil 0.5% | 84.68 | 2.24 | 82.44 | GO-SIN |
GO 0.5 Diff | -5.23 | 0.09 | -5.32 | GO-SIN-DIF |
Spot Gas Oil 0.25% | 88.61 | 2.24 | 86.37 | GO25-SIN |
GO 0.25 Diff | -1.30 | 0.09 | -1.39 | GO25-SIN-DIF |
Spot Gas Oil 0.05% | 89.94 | 2.24 | 87.70 | GO005-SIN |
GO 0.05 Diff | 0.03 | 0.09 | -0.06 | GO005-SIN-DIF |
Spot Gas Oil 0.001% | 90.66 | 2.28 | 88.38 | GO10-SIN |
GO 0.001 Diff | 0.75 | 0.13 | 0.62 | GO10-SIN-DIF |
Spot Jet/Kero | 88.40 | 2.31 | 86.09 | JET-SIN |
Jet/Kero Diff | 0.03 | 0.08 | -0.05 | 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 Leroy Leo)
((trixie.yap@thomsonreuters.com;))
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