Asia’s middle distillates markets kickstarted the new year in a slightly slow fashion, despite more activity on the trading window, as traders awaited refiner sales to start for February shipments. Offers are probably going to emerge only a week later, two trade sources said, as refineries mull their sales plans. Buying from Indonesia, however, did emerge for prompt second-half January spot deliveries, after the state-owned energy major, Pertamina, already secured some term cargoes earlier for first-quarter delivery.
Spot market differentials for both 10ppm sulphur gasoil (GO10-SIN-DIF) and jet fuel (JET-SIN-DIF) fell, reflecting the market’s narrower backwardated swaps structure. Jet fuel discussion levels came under pressure from lower-priced deals, with the market flipping into a discount of 1 cent per barrel. Meanwhile, the gasoil exchange of futures for swaps (EFS) spread remained at one of its narrowest discounts of around $17 per ton in the past year, LSEG pricing data showed, with sellers likely to remain keen on sending cargoes east instead of west for the near-term.
Refining margins (GO10SGCKMc1) were little changed, closing the trading session at around $16 a barrel. Regrade (JETREG10SGMc1) for February closed the trading session at discounts of around $1.50 a barrel.
– No gasoil deal, one jet fuel deal – Middle distillates stockpiles at Fujairah Oil Industry Zone slipped to slightly more than a one-month low of 1.968 million barrels for the week ended Dec..