SINGAPORE: Asia’s 10 ppm sulphur gasoil margins and cash premiums gave back earlier gains and slipped again on Monday on ample supply and thin market liquidity.
Cash differentials for 10 ppm sulphur gasoil weakened to $1.36 a barrel. Offers were aplenty, but buying interest was muted in the open market. Refining margins for 10 ppm sulphur gasoil fell by more than $3 a barrel to $30.38 a barrel.
Jet fuel refining margins trended in the same direction, falling by more than $1 a barrel to $26.73 a barrel. Regrade widened by 40 cents to minus $3.65 a barrel. Malaysia’s PETCO offers end-Dec gasoil. Qatar’s QE offers jet fuel for Jan
India’s fuel demand climbed to an eight-month high in November, government data released on Friday showed, as festivals and a pick-up in industrial activity boosted sales in the world’s No. 3 oil consumer.
Consumption of fuel, a proxy for oil demand, was 2.4% higher than the previous month, and rose 10.2% year-on-year to 18.84 million tonnes in November, according to the data from Indian oil ministry’s Petroleum Planning and Analysis Cell (PPAC).
China may close the year with record shipments of key transportation fuels in December as refiners rush to use their export quotas and maximize overseas profits to compensate for tepid domestic fuel demand caused by Covid-related curbs.
Canada’s TC Energy said on Sunday it has not yet determined the cause of the Keystone oil pipeline leak last week in the United States, while also not giving a timeline as to when the pipeline will resume operation.
TC shut the pipeline after more than 14,000 barrels of crude oil spilled into a creek in Kansas on Wednesday, making it one of the largest US crude spills in nearly a decade.
Saudi energy minister Prince Abdulaziz bin Salman said on Sunday the impact of European sanctions on Russian crude oil and price cap measures “did not bring clear results yet” and its implementation was still unclear. Russia has said it would not abide by the measure even if it has to cut its production.
Oil prices rose as much as more than 1% on Monday as a key pipeline supplying the United States remained shut while Russian President Vladimir Putin threatened to cut production in retaliation for a Western price cap on its exports.
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