SINGAPORE: Asia’s 10-ppm sulphur gasoil margins fell to the lowest level for March and remained at more than a one year low on the back of cautious trading sentiment and muted trading activity.
A portion of the market in northeast Asia were readying for holidays in early April, with May selling interest likely to emerge later for some refiners.
Cash differentials were almost steady week on week, closing the trading session at $1.39 per barrel. A buy-sell gap hindered activity.
Jet fuel refining margins also remained at more than a one year low, discussions for the aviation fuel cargoes even thinner than 10 ppm sulphur gasoil.
Regrade widened back to a discount of around $4 a barrel, down 35% week on week but just shy of being the lowest level for March.
Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area fell for a fifth week in a row, data from Dutch consultancy Insights Global showed on Thursday. Gasoil stocks stood at 2.35 million tonnes, falling 3.4% to their lowest since early February, with higher demand up the Rhine river, said Insights Global’s Lars van Wageningen.
Vietnam would need investment of up to 270 trillion dong ($11.51 billion) to expand its national fuel storage system by 2030, state media reported on Friday, citing a draft plan prepared by the Ministry of Industry and Trade.
Oil prices dipped on Friday, with benchmarks heading for their weakest monthly performances since November, ahead of key US inflation data which could give clues on future interest rate moves and the strength of the dollar.
China’s manufacturing activity expanded at a slower pace in March, official data showed on Friday, raising doubts about the strength of a post-COVID factory recovery amid weaker global demand and a property market downturn.
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