SINGAPORE: Asia’s 10-ppm sulphur gasoil margins declined for the second consecutive session to $23.70 per barrel as weak supply fundamentals persisted amid firmer oil futures.
Fundamentals were pressured by ample supplies, with at least two producers out in the market with spot cargoes for March. China’s February exports are still estimated at around 2 million tonnes, according to several consultancies and China-based trading sources.
Temporary supply disruptions in northwest Europe for the fuel cushioned decreases.
Cash differentials also came under pressure, with numerous offers readily available in the open market for both prompt and March parcels.
Jet fuel refining margins likewise went on a downtrend, but strong demand outlooks and limited China export volumes capped weakness. As a result, regrade narrowed to a discount of 20 cents.
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