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.