Asia Distillates-Diesel cash differentials rebound; Dec regrade flips to discount

By Reuters News

- Asia's diesel prompt timespreads and cash differentials rebounded on Thursday, as talk of slightly lower exports from China surfaced.

Some regional buying interest also emerged, with Vietnam's Petrolimex seeking end-November and early December arrivals. MDIS/TENDA

Sales of December cargoes remained scant, with traders expecting more activity next week, together with some term offers.

Refining margins , however, eased to below $61 a barrel, reversing gains from the last two sessions.

Cash differentials rebounded slightly to a premium of almost 50 cents per barrel.

Jet fuel buying interest for December cargoes emerged from Indonesia's Pertamina, with the energy major looking to buy around 600,000 barrels of the fuel.

China's exports of aviation fuel are still estimated at roughly 2.5 million metric tons, according to multiple sources.

Regrade flipped back to a discount, reflecting gasoil's stronger performance relative to jet fuel.


SINGAPORE CASH DEALS O/AS

- No gasoil deal, one jet fuel deal


INVENTORIES

- US crude, gasoline and distillate inventories fell last week as demand hit its highest level in a year, the Energy Information Administration said on Wednesday. EIA/S

- Singapore's oil product stockpiles were little changed week-on-week, official data showed on Thursday, as gains in residual fuel inventories offset a decline in light and middle distillates stocks. O/SING1


NEWS

- The US Energy Department said on Wednesday it would loan 300,000 barrels of fuel oil to four companies from the nation's emergency heating oil reserve in an effort to counter surging prices before the onset of winter.

- The global oil market has moved back into surplus after months of disruption caused by US-Israeli war with Iran, JPMorgan said in a note on Wednesday, while HSBC raised its forecasts for Saudi Aramco crude oil production.

- Malaysia has postponed the implementation of its 1% sustainable aviation fuel (SAF) blending mandate by three years to 2030 in an effort to give the aviation industry time to prepare and adjust its operations, Malaysia's commodities ministry said on Thursday.

- Chinese refiners have sold only around 500,000 metric tons of diesel for loading in November so far, according to traders and Reuters calculations based on trade data, after a surge in exports since July sent domestic stockpiles to multi-year lows.


PRICES

MIDDLE DISTILLATES





CASH ($/BBL)

ASIA CLOSE

Change

Prev Close

RIC

Spot Gas Oil 0.25%

148.94

-10.62

159.56

GO 0.25 Diff

-5.75

0.08

-5.83

Spot Gas Oil 0.05%

151.34

-10.19

161.53

GO 0.05 Diff

-3.34

0.52

-3.86

Spot Gas Oil 0.001%

155.16

-10.61

165.77

GO 0.001 Diff

0.47

0.09

0.38

Spot Jet/Kero

153.83

-10.50

164.33

Jet/Kero Diff

-0.41

0.16

-0.57






For a list of derivatives prices, including margins, please double click the RICs below.





Brent M1




Gasoil M1




Gasoil M1/M2




Gasoil M2




Regrade M1




Regrade M2




Jet M1




Jet M1/M2




Jet M2




Gasoil 500ppm-Dubai Cracks M1




Gasoil 500ppm-Dubai Cracks M2




Jet Cracks M1




Jet Cracks M2




East-West M1




East-West M2




LGO M1




LGO M1/M2




LGO M2




Crack LGO-Brent M1




Crack LGO-Brent M2




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