SINGAPORE: Asia’s 10 ppm sulphur gasoil refining margins declined for the third consecutive day, closing at $15.77 a barrel, as the sell-off for prompt physical parcels continued amid bearish trading sentiment.
The prompt-forward spread in the gasoil paper market turned to a slight contango structure, where prompt prices were trading lower than forward prices signalling a weaker prompt market.
Concerns remained on burgeoning supplies within the region, with some shoretank storage facilities in Singapore at high levels, a handful of market sources said.
Most are having high stocks of 500 ppm sulphur gasoil, one of the sources said.
Offers in the paper swaps and physical markets stayed prevalent throughout the afternoon trading session for prompt parcels, although some buying interest at lower prices remained - as the market was at more-than-a-year low levels.
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