Asian cash premiums for 10 ppm gasoil fell on Thursday, due to weaker buying interest for physical cargoes, while Singapore middle distillate inventories rose to their highest level in more than four months.
Cash premiums for 10 ppm gasoil GO10-SIN-DIF were at 66 cents per barrel to Singapore quotes, compared with 72 cents a barrel on Wednesday.
Refining margins, also known as cracks, for gasoil with 10 ppm sulphur content dipped to $12.09 per barrel over Dubai crude during Asian trading hours, down from $12.47 per barrel a day earlier.
Meanwhile, jet fuel cracks dipped to $9.96 per barrel over Dubai crude, compared with $10.37 per barrel a day earlier.
Cash differentials for jet fuel JET-SIN-DIF were at a discount of 9 cents a barrel to Singapore quotes, compared with a narrow premium of 2 cents per barrel on Wednesday.
VIETNAM’S NGHI SON OFFERS FIRST GASOIL CARGO FOR EXPORT
– Vietnam’s Nghi Son Refinery and Petrochemical (NSRP) is offering a gasoil cargo for export for the first time, a source with the refinery said.
– “We are exporting because domestic sales have been slow recently,” the source said, declining to be identified because he was not authorised to speak with media.
– The delivery schedule for the export cargo of 40,000 kilolitres, about 251,000 barrels, of gasoil with a sulphur content of 50 ppm is from Feb. 22-25, according to two trade sources.
– The tender closes at noon (0500 GMT) on Feb. 17, according to the tender document reviewed by Reuters.
– Singapore onshore middle distillate stocks climbed 8.8% to a more than four-month high of 11.6 million barrels in the week to Feb. 12, Enterprise Singapore data showed.
– Weekly middle distillate inventories have averaged 10.7 million barrels so far in 2020, having averaged 11.1 million barrels a week in 2019, Reuters calculations showed.
– Overall, onshore middle distillate inventories were 1.8% higher year-on-year.
– U.S. crude stocks rose more than expected while gasoline and distillate inventories fell last week, the Energy Information Administration said on Wednesday.
– Crude inventories rose by 7.5 million barrels in the week to Feb. 7 to 435 million barrels, compared with analysts’ expectations in a Reuters poll for a 3 million-barrel rise.
– Distillate stockpiles, which include diesel and heating oil, fell by 2 million barrels in the week to 143.2 million barrels, versus expectations for a 557,000-barrel drop, the EIA data showed.
SINGAPORE CASH DEALS
– Two gasoil trades, one jet fuel deal
– State-run China National Chemical Corp, or ChemChina, was forced to shut down a 100,000 barrels-per-day crude oil refinery in east China and cut processing rates at other two plants due to the coronavirus, three sources told Reuters on Thursday.
– Oil prices were mixed as concerns about falling demand caused by travel restrictions tied to the coronavirus outbreak in China, the world’s biggest oil importer, outweighed expectations of supply cuts from major producers.
– OPEC on Wednesday cut its forecast for global growth in oil demand this year due to the coronavirus outbreak and said its output fell sharply in January as producers implemented a new supply-limiting pact.
Source: Reuters (Reporting by Koustav Samanta; Editing by Subhranshu Sahu)