SINGAPORE: Asia’s cash premiums for 10 ppm gasoil inched lower on Wednesday, but remained within close sight of a record high touched in the previous session as recovering demand across the globe grappled with limited supplies.
Cash differentials for gasoil with 10 ppm sulphur content dipped 22 cents to $7.86 a barrel to Singapore quotes, compared with Tuesday’s $8.08 a barrel that was an all-time high according to Reuters data that goes back to late 2011.
The gasoil cash premiums have surged over 31% in the last two weeks, riding on steady cargo demand in the physical market, while the prompt-month time spread for the benchmark 10 ppm gasoil grade in Singapore traded at $8.59 a barrel on Wednesday.
The number of journeys taken over China’s three-day Tomb-Sweeping Festival holiday tumbled by nearly two-thirds from last year, state media said, citing data from the transport ministry, as authorities battle outbreaks of COVID-19 across the country.
Middle-distillate inventories in the Fujairah Oil Industry Zone rose 4.6% to 1.9 million barrels in the week ended April 4, data via S&P Global Commodity Insights showed.
Weekly stocks in Fujairah have averaged 1.9 million barrels so far this year, compared with 3.5 million barrels in 2021, Reuters calculations showed.
US distillate inventories, which include diesel and heating oil, rose by 593,000 barrels in the week ended April 1, according to market sources, citing American Petroleum Institute figures.
Oil futures rose on Wednesday, paring early losses, as the threat of new sanctions on Russia raised supply concerns, countering fears of weaker demand following a build in US crude stockpiles and Shanghai’s extended lockdown.
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