SINGAPORE: Asia’s 10-ppm sulphur gasoil and jet fuel margins fell for the third consecutive trading session as a large portion of the market remained cautious and market activity stayed thin.
Refining margins for 10 ppm gasoil fell to around $17 per barrel.
Some sellers emerged to offer end-April parcels via tenders, weighing on supply fundamentals further but overall discussions in the open market stayed muted.
There were no offers for 10 ppm sulphur gasoil for a third trading session.
Cash differentials for 10 ppm sulphur gasoil cargoes fell to 88 cents per barrel.
Jet fuel refining margins fell at a slower pace, with regrade narrowing further for May to a discount of $1.80 per barrel.
US crude oil and fuel inventories fell last week, according to market sources citing American Petroleum Institute figures on Tuesday.
Crude stocks fell by about 4.3 million barrels in the week ended March 31, they said. Gasoline inventories fell by about 4 million barrels, while distillate stocks fell by about 3.7 million barrels, according to the sources.
Middle distillates stockpiles at Fujairah Oil Industry Zone rose to 3.074 million barrels, close to a three-month high, in the week ended April 3, according to industry information service S&P Global Commodity Insights.
Oil prices were stable on Wednesday, as the market weighed gloomy economic prospects against expectations of US crude inventory declines and OPEC’s voluntary output cuts announcement.
Finnish biofuel producer Neste plans to start commercial production at its renewable fuels expansion project in Singapore in the coming weeks after starting trial runs since February, a senior company executive said on Wednesday.
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