Asia Distillates-Market structure pares recent gains
SINGAPORE, Oct 3 (Reuters) -The market structure for the middle distillates complex pared back from its recent strength, with timespreads narrowing for prompt-month contracts amid sell-offs.
Backwardation for both 10ppm sulphur gasoil and jet fuel narrowed to below 30 cents for the balance-Oct/Nov contract, based on LSEG data at the Asia close.
Spot differentials were also pegged lower amid the weaker market structure, after several sessions of uptick.
Some trades emerged for prompt 10ppm sulphur gasoil while offers for late-October dipped. The spot differential GO10-SIN-DIF was pegged lower at a premium of 24 cents a barrel on Wednesday, after hitting a seven-month high on Tuesday.
Refining margins GO10SGCKMc1 closed lower at $12.55 a barrel, as crude prices continued to climb day-on-day.
Regrade JETREG10SGMc1 widened to a discount of 28 cents a barrel on Wednesday, according to LSEG data.
SINGAPORE CASH DEALS O/AS
- Two deals for gasoil, no deal for jet fuel
INVENTORIES
- U.S. distillate stockpiles, which include diesel and heating oil, fell 1.3 million barrels in the week ended Sept. 27 to 122 million barrels, compared with analysts' expectations for a 1.54 million-barrel draw. EIA/S
- Singapore's middle distillates inventories rebounded to 10.74 million barrels after slumping last week, official data showed on Thursday. O/SING1
NEWS
- A meeting of top OPEC+ ministers has kept oil output policy unchanged including a plan to start raising output from December, while also emphasising the need for some members to make further cuts to compensate for overproduction.
- French oil major TotalEnergies told investors on Wednesday it would focus on low-cost upstream production and signing oil-linked gas contracts to operate profitably and reward shareholders through 2030 as prices fall.
- Long lines of container ships queued up outside major U.S. ports on Thursday as the biggest dockworker strike in nearly half a century entered its third day preventing unloading and threatening shortages of everything from bananas to auto parts.
PRICES
MID-DISTILLATES | ||||
CASH ($/T) | ASIA CLOSE | Change | Prev Close | RIC |
Spot Gas Oil 0.5% | 80.25 | -1.06 | 81.31 | GO-SIN |
GO 0.5 Diff | -6.00 | 0.00 | -6.00 | GO-SIN-DIF |
Spot Gas Oil 0.25% | 85.60 | -1.06 | 86.66 | GO25-SIN |
GO 0.25 Diff | -0.65 | 0.00 | -0.65 | GO25-SIN-DIF |
Spot Gas Oil 0.05% | 85.92 | -1.09 | 87.01 | GO005-SIN |
GO 0.05 Diff | -0.33 | -0.03 | -0.30 | GO005-SIN-DIF |
Spot Gas Oil 0.001% | 86.49 | -1.11 | 87.60 | GO10-SIN |
GO 0.001 Diff | 0.24 | -0.05 | 0.29 | GO10-SIN-DIF |
Spot Jet/Kero | 85.69 | -1.18 | 86.86 | JET-SIN |
Jet/Kero Diff | -0.28 | -0.03 | -0.25 | 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 Jeslyn Lerh; Editing by Shreya Biswas
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.