Spot gasoil cash premiums hit fresh low

Pic: sulphur gasoil ship

Asia’s 10 ppm sulphur gasoil cash differentials fell to a new low of 34 cents a barrel since early December 2021, as a sell-off continued for the third consecutive trading session.

Majority of the market stayed bearish on the supply front and demand in Asia remained dismal, despite some buying interest from Vietnam for prompt high sulphur cargoes.

Refining margins for 10 ppm sulphur gasoil closed the trading session lower as well at $16.53 a barrel, tracking the weak trading sentiment.

Jet fuel refining margins fell at a slower pace, narrowing to the regrade (JETREG10SGMc1) to a discount of $1.40 a barrel – the narrowest in around two months.

Some market participants attributed the narrowing regrade also to the sharper fall in gasoil cracks and weaker fundamentals in the gasoil market compared with jet fuel.

SINGAPORE CASH DEALS
– No gasoil or jet fuel deal.

INVENTORIES
– U.S. crude oil and product inventories were seen declining last week, a preliminary Reuters poll showed on Monday. Distillate inventories (USOILD=ECI), which include diesel and heating oil, were expected to have decreased by about 800,000 barrels last week.

NEWS
– Two Chinese polyester fibre makers are seeking Beijing’s approval to build a $10 billion refinery and petrochemical complex in Indonesia, sources with direct knowledge of the matter told Reuters.

– Russia has increased its diesel exports to Brazil and other parts of Latin America following an embargo on shipments to Europe, according to traders and Refinitiv Eikon data.

Marex Media