Asia’s diesel markets were brimming with spot refiner sale activities for November as sellers cashed in on front-month market premiums, with timespreads extending gains and spot premiums.
Spot selling interest from a handful of refiners for November resurfaced despite nearing the month-end, with China-origin barrels also up for grabs.
South Korea’s GS Caltex offered both 10ppm and 500ppm sulphur gasoil cargoes via a tender that closes on Friday, while a key Japanese refiner sold at least two first-half November loading cargoes at premiums of up to 60-70 cents per barrel, traders say.
Likewise for jet fuel markets, at least one of China’s main exporters offered first-half November cargoes via a spot tender that closes today.
The 10ppm sulphur gasoil refining margins (GO10SGCKMc1) soared to slightly more than three-month highs of $22.2 a barrel, reflecting the sentiment push from fresh U.S. sanctions on Russia.
Jet fuel margins went back to slightly more than 1 1/2-year highs of slightly above $22 a barrel, echoing the diesel movements.
Cash differentials (GO10-SIN-DIF) climbed further to $2.22 a barrel, its highest.
Regrade (JETREG10SGMc1) fell back to discounts of 1 cent per barrel, reflecting the firmer gasoil market performance.
SINGAPORE CASH DEALS
– One gasoil deal, no jet fuel deal
INVENTORIES
– U.S. crude oil, gasoline and distillate inventories fell last week as refining activity and demand strengthened, the Energy Information Administration said on Wednesday.
– Singapore turned a net importer of jet fuel for the week ended October 22, while diesel net exports fell by 13% week on week, official government data showed on Thursday.
REFINERY NEWS
– A hydrocracker remained offline at Chevron’s CVX.N 285,000-barrel-per-day El Segundo refinery in Southern California three weeks after a large fire at a jet-fuel-producing unit earlier this month, sources said on Wednesday.
