SINGAPORE, Feb 27 (Reuters) - Asia's middle distillates markets recorded a bout of thin spot liquidity on the trading window for the second straight day as a buy-sell gap hindered physical trades and April sales have yet to begin from key refiners.
Traders were waiting for a clearer direction on April spot availability, as the refinery maintenance season trudges on, especially in northeast Asia.
Outlooks were mixed given the lack of larger east-west trade flows in the next few weeks, especially for diesel, given that volumes from India are still flowing east for the first half of March.
Singapore complex refining margins hovered around $3 a barrel so far, making it still profitable for refineries to maintain their runs in the near term.
For jet fuel, some analysts were expecting more swing volumes to pivot west in comparison to diesel given the better profitability.
Refining margins GO10SGCKMc1 went back to one-month low levels as paper markets struggled to catch up with crude gains, while
Cash differentials GO10-SIN-DIF gained slightly to 25 cents a barrel, but a lack of firm negotiations on the trading window capped overall market movements.
Regrade JETREG10SGMc1 remained little changed at slightly above $1 a barrel.
SINGAPORE CASH DEALS O/AS
- No deals for both fuels
INVENTORIES
- Singapore's middle distillates inventories slipped for a second straight week as net exports rose, despite a rise in diesel/gasoil imports, official data showed on Thursday. O/SING1
- U.S. crude oil stockpiles fell unexpectedly last week as refining activity ticked higher, while gasoline and distillate inventories posted surprise builds, the Energy Information Administration $(EIA)$ said on Wednesday. EIA/S
NEWS
- U.S. President Donald Trump on Wednesday said he was reversing a license given to Chevron CVX.N to operate in Venezuela by his predecessor Joe Biden more than two years ago, accusing President Nicolas Maduro of not making progress on electoral reforms and migrant returns.
- BP BP.L slashed planned investment in renewable energy and said on Wednesday it would increase annual oil and gas spending to $10 billion, in a major strategy shift aimed at boosting earnings and investor confidence.
- Several Chinese builders of sustainable aviation fuel (SAF) plants are postponing startup as a lack of government policy guidance restrains them from marketing the fuel domestically or exporting it.
PRICES
MIDDLE DISTILLATES | ||||
CASH ($/BBL) | ASIA CLOSE | Change | Prev Close | RIC |
Spot Gas Oil 0.5% | 82.60 | -1.01 | 83.61 | GO-SIN |
GO 0.5 Diff | -5.30 | 0.01 | -5.31 | GO-SIN-DIF |
Spot Gas Oil 0.25% | 87.16 | -1.01 | 88.17 | GO25-SIN |
GO 0.25 Diff | -0.74 | 0.01 | -0.75 | GO25-SIN-DIF |
Spot Gas Oil 0.05% | 86.93 | -1.01 | 87.94 | GO005-SIN |
GO 0.05 Diff | -0.97 | 0.01 | -0.98 | GO005-SIN-DIF |
Spot Gas Oil 0.001% | 88.15 | -0.98 | 89.12 | GO10-SIN |
GO 0.001 Diff | 0.25 | 0.04 | 0.21 | GO10-SIN-DIF |
Spot Jet/Kero | 87.72 | -0.97 | 88.69 | JET-SIN |
Jet/Kero Diff | 0.91 | 0.01 | 0.90 | 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 Shreya Biswas)
((trixie.yap@thomsonreuters.com;))
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