Asia Distillates-Discounts for physical cargoes deepen on ample Dec supplies
SINGAPORE, Nov 21 (Reuters) -Asia's gasoil spot cash differentials GO10-SIN-DIF remained at a discount as ready sellers continued to offer cheaper-priced spot lots for prompt December loading.
Cracking margins GO10SGCKMc1 rebounded slightly to above $23 a barrel, but fundamentals were unchanged as December supplies from regional refineries stayed ample, with at least one northeast Asian refinery offering more spot lots since the start of this week.
The availability of spot cargoes for December-loading is slightly more than November-loading from the remaining refiners, one source said, which is offsetting the slightly lower volumes from China.
China-origin loadings are at 400,000 metric tons-500,000 metric tons for November to date, shiptracking data from Kpler and LSEG showed.
More contractual activity emerged as one more regional spot buyer sought for 10ppm and 500ppm sulphur gasoil for a full-year delivery in 2024.
The east-west arbitrage, typically measured by the exchange of futures for swaps (EFS), remained at discounts of less than $40 a metric ton for December LGOAEFSMc1 and less than $30 a ton for January LGOAEFSMc2.
Jet fuel activity was muted in the open market but some sources were still hopeful about better demand in the U.S. ahead of the holiday season this week until end-December.
The Asia-U.S. arbitrage window widened even further from last week, providing support to Asian swaps and regrade discounts JETREG10SGMc1 as well.
SINGAPORE CASH DEALS O/AS
- One 500ppm sulphur gasoil deal, no jet fuel deal.
INVENTORIES
- Analysts in a Reuters poll estimated stockpiles of gasoline USOILG=ECI were up by about 400,000 barrels last week, while distillate stockpiles USOILD=ECI, which include diesel and heating oil, were seen decreasing by about 600,000 barrels. EIA/S
NEWS
- Parts of the river Rhine in south Germany remained closed to shipping on Tuesday after heavy rain this month but falling water levels could lead to a reopening later on Tuesday, navigation authorities said.
- Neste NESTE.HE could have excess sustainable aviation fuel production capacity by 2028 and requires more certainty about long-term demand to justify investment after that point, a senior executive at the refiner said on Monday.
- Oil futures fell on Tuesday, reversing steep gains made in the past two sessions, as investors turned cautious ahead of a meeting of OPEC+ this Sunday when the producer group may discuss deepening supply cuts due to slowing global growth. O/R
PRICES
MIDDLE DISTILLATES | |||||
CASH ($/BBL) | ASIA CLOSE | Change | % Change | Prev Close | RIC |
Spot Gas Oil 0.5% | 99.91 | 1.43 | 1.45 | 98.48 | GO-SIN |
GO 0.5 Diff | -6.00 | -0.10 | 1.69 | -5.90 | GO-SIN-DIF |
Spot Gas Oil 0.25% | 102.68 | 1.43 | 1.41 | 101.25 | GO25-SIN |
GO 0.25 Diff | -3.23 | -0.10 | 3.19 | -3.13 | GO25-SIN-DIF |
Spot Gas Oil 0.05% | 102.54 | 1.41 | 1.39 | 101.13 | GO005-SIN |
GO 0.05 Diff | -3.37 | -0.12 | 3.69 | -3.25 | GO005-SIN-DIF |
Spot Gas Oil 0.001% | 105.65 | 1.41 | 1.35 | 104.24 | GO10-SIN |
GO 0.001 Diff | -0.26 | -0.12 | 79.31 | -0.15 | GO10-SIN-DIF |
Spot Jet/Kero | 104.73 | 0.18 | 0.17 | 104.55 | JET-SIN |
Jet/Kero Diff | 0.51 | -0.12 | -19.05 | 0.63 | 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
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