NEW DELHI: Asia’s cash premiums for 10ppm gasoil rose on Monday after China’s first-half diesel exports plunged, stoking concerns about supply in an already tight market.
Cash differentials for gasoil with 10 ppm sulphur content were at a premium of $3.25 a barrel to Singapore quotes, down from $2.98 per barrel on Friday. Refining margins for 10 ppm gasoil slipped to $44.91 a barrel over Dubai crude in Asian trading hours, compared with $46.92 in the last session.
China’s diesel exports dropped by 84% during Jan-June period to 2.06 million tonnes, official data showed. June diesel exports were at 330,000, compared with 120,000 tonnes in May, but still a fraction of the 2.36 million tonnes a year earlier.
Monday’s data also showed exports of jet fuel, including refuelling at Chinese airports for international flights, at 520,000 tonnes, versus 810,000 tonnes in May and 910,000 tonnes a year earlier. Year-to-date exports rose 14.9% on the year to 4.28 million tonnes.
No gasoil deal, no jet fuel trades. Oil prices extended gains, propped up by a weaker dollar and tight supplies that offset concerns about recession and the prospect of widespread COVID-19 lockdowns in China again reducing fuel demand.
US Treasury Secretary Janet Yellen described as “encouraging” talks with India about a proposed price cap on Russian oil that Washington is pushing to drive down oil prices and make it harder for Moscow to fund its war in Ukraine.
Comments
Comments are closed.