SINGAPORE: Asia’s 10-ppm sulphur gasoil margins on Wednesday recouped losses with premiums hitting their highest since end-November, as oil futures gained amid a forecast of a rebound in demand over the course of next year.
Cash differentials rose by 4 cents to $1.63 a barrel.
Buying interest emerged, but offers were once again readily available for end-December to January-loading cargoes.
Refining margins for 10 ppm sulphur gasoil surged to $37.63 a barrel, up more than $3 day on day. Likewise, jet fuel refining margins went up by a similar magnitude to close at $33.63 a barrel.
Regrade was flat at minus $4 a barrel. South Korea’s SK Energy and Hyundai Oilbank offers January jet fuel and 10 ppm sulphur gasoil respectively.
US crude oil inventories rose last week, along with gasoline and distillate stockpiles, according to market sources citing American Petroleum Institute figures on Tuesday.
Crude stocks rose by about 7.8 million barrels in the week ended Dec. 9, they said. Gasoline inventories rose by about 900,000 barrels, while distillate stocks rose by about 3.4 million barrels, according to the sources, who spoke on condition of anonymity.
Middle distillate stocks at Fujairah Oil Industry Zone rose to a new high since early October to 3.812 million barrels, according to industry information service S&P Global Commodity Insights.
Road and air traffic in China, the world’s second-biggest oil consumer, has rebounded sharply after a significant easing in the country’s Covid-19 restrictions, boosting the outlook for fuel demand and supporting crude prices.
The changes immediately triggered a significant rise in mobility, with road and air transport picking up for the first time in almost two months, according to data from the transport ministry, travel analytics firms and energy consultancies.
Global oil demand growth will slow next year but will still be at a robust 1.7% as China recovers from COVID-related economic doldrums, the International Energy Agency (IEA) said on Wednesday.
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