SINGAPORE: Asia's cash premiums for 10ppm gasoil climbed on Friday as refinery turnarounds in the region kept supplies tight while inventories in the Amsterdam-Rotterdam-Antwerp (ARA) storage hub dropped to the lowest levels this year.
Cash differentials for gasoil with 10 ppm sulphur content rose to 42 cents a barrel to Singapore quotes, up from 36 cents on Thursday.
Meanwhile, cash premiums for jet fuel edged lower by a cent to $1.01 a barrel to Singapore quotes Friday.
The overall jet fuel market, however, remains well supported in the near term, helped by expected strong aviation demand during the summer, trade sources said.
Air-passenger traffic in Asia-Pacific, which makes up about 34 percent of the global market, rose by 12 percent year on year in March, supported by strong economic growth in the region, the International Air Transport Association (IATA) said on Thursday.
"China is the world's fastest-growing aviation market and the country's efforts to develop air infrastructure, especially in Tier-2 cities, should support strong jet demand," said Sri Paravaikkarasu, head of East of Suez oil at FGE.
"The other emerging pillar is India, although the absolute volumes are much lower than China presently. Consumption in India will be supported by favourable government policies in the medium term and rapidly growing urban population in the long term."
ARA STOCKS
- Gasoil inventories in independently held storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining hub fell 3.6 percent to 2.1 million tonnes in the week to May 3, the lowest since Dec. 21, data from Dutch consultancy PJK International showed.
- Gasoil stocks fell because of strong inland demand.
- Jet fuel inventories dipped by 2.4 percent to 568,000 tonnes.
- ARA gasoil stocks were down about 38 percent from year-ago levels, while jet fuel inventories were about 33 percent down.
OTHER
- Saudi Arabia's financial position has stabilised thanks to higher oil prices and efforts to raise non-oil revenues and trim government spending.
But the country probably needs even higher prices and revenues in the next few years to pay for its ambitious transformation programme while maintaining internal stability.
- Oil prices were little changed on Friday after early advances, with market jitters kicking in over the prospect of geopolitical risks from possible new US sanctions against Iran.
- Asian spot prices for liquefied natural gas (LNG) firmed over the past week, supported by strong oil and coal markets and a structural tightening of the fuel's fundamentals.
- Norwegian oil companies and their employees on Friday agreed a 2.8 percent pay rise for workers on offshore oil and gas rigs, the companies said.
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