SINGAPORE: Asia’s 10-ppm sulphur gasoil and jet fuel margins fell for the third consecutive day due to thin liquidity, amid firmer oil futures in the afternoon trading session.
Regrade gave back the entire week of gains and fell back to a discount of more than $4 per barrel as market players remained more bullish on gasoil fundamentals than jet fuel.
Cash differentials for 10 ppm sulphur gasoil were steady as a buy-sell gap hindered deals. Bids were still considered non-competitive for the sellers.
The market was awaiting a clearer direction on May supply fundamentals, with a few sellers expected to emerge in the next few days.
US crude oil and gasoline inventories fell last week, while distillate stockpiles rose, according to market sources citing American Petroleum Institute figures on Tuesday. Crude stocks fell by about 6.1 million barrels in the week ended March 24, they said. Gasoline inventories fell by about 5.9 million barrels, while distillate stocks rose by about 550,000 barrels, according to the sources, who spoke on condition of anonymity.
Middle distillates stockpiles at Fujairah Oil Industry Zone fell for the first time in a month to 2.595 million barrels ib the week ended March 27, according to industry information service S&P Global Commodity Insights.
Saudi Aramco’s new refinery deal to buy a 10% stake in private Chinese chemical group Rongsheng Petrochemical includes agreements on crude oil storage in eastern China and the supply of plastics and petrochemicals to the Middle East energy giant. Crude prices rose for a third session on Wednesday as a halt to some exports from Iraqi Kurdistan raised concerns of tightening supplies and fears of a global banking crisis eased.ay.
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