SINGAPORE: Asia’s 10-ppm sulphur gasoil margins and jet fuel margins posted their first weekly gains in seven on Friday, supported by weaker crude prices, even as demand sentiment remained weak.
Refining margins for 10ppm sulphur gasoil closed trading at $14.50 a barrel, higher than the previous session’s close of $13.46 a barrel.
Jet fuel refining margins strengthened to $14.25 a barrel, tracking gains in 10ppm sulphur gasoil.
Cash differentials for 10ppm sulphur gasoil rose to minus 27 cents a barrel, from minus 31 cents a barrel in the previous session.
Asia’s regrade value was at minus 25 cents by the end of the trading session, compared with the previous session’s close of minus 12 cents.
Global supply continues to outstrip demand, with Asian barrels finding limited opportunities to pivot out of the region, amid sluggish European demand, said Refinitiv Oil Research in a monthly report.
Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area rose by 5% to a two-year high at about 2.36 million tonnes in the week to Thursday, data from Dutch consultancy Insights Global showed.
Oil prices rose on Friday but were poised for a third straight week of losses after markets registered dramatic drops on fears of a weakening US economy and slowing Chinese demand.
Russia is expected to increase seaborne oil exports from its western ports this month to a four-year high to meet Asian demand for low-priced oil, two sources familiar with the loading plans from the ports said.
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