SINGAPORE: Asia’s 10-ppm sulphur gasoil margins and cash premiums snapped a week-long gain, falling on the first trading day, on the back of thin spot activity. Some buying interest for early January parcels capped weakness.
Cash differentials for 10 ppm sulphur gasoil fell to $1.41 a barrel, down 6 cents day on day. Refining margins fell by more than $4 to $38.31 a barrel.
Jet fuel refining margins fell by a similar magnitude, closing the session at $35.31 a barrel. Regrade narrowed by 80 cents to $3 a barrel. China’s diesel and gasoline exports continued to surge in November, hitting their highest levels since June and May 2021 respectively, as refiners dashed to use up their 2022 export quotas and sell down rising inventory.
Oil rose on Monday after tumbling by more than $2 a barrel in the previous session as optimism over the Chinese economy outweighed concern over a global recession.
South Korea said on Monday it will extend by up to six months tax breaks on some fuel oil products, fuel used for electricity generation and passenger car purchases beyond the end-2022 expiry to help ease the burden of higher living costs. The tax break on diesel, liquefied petroleum gas butane, and gasoline will be effective until the end of April next year, while the margin of the break for gasoline will be reduced to 25% from 37%, the finance ministry said in a statement.
State energy firms Saudi Aramco and Sinopec plan to build a new refinery-petrochemical complex in southeast China which will commence operations by the end of 2025. The companies have signed a heads of agreement to build the complex at Gulei, Fujian province, which will include a 320,000 barrels per day (bpd) refinery and a 1.5 million tonnes per year cracker, Aramco said in a statement on Sunday.
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