SINGAPORE: Asia's jet fuel cash premiums extended losses on Tuesday, falling to an eight-session low as slowing seasonal demand weighed on bullish sentiment that boosted the jet fuel market to multi-year highs since the start of the year, trade sources said.
In another sign of fading market sentiment, the front-month jet fuel time spread also narrowed its backwardated structure to about $1.05 a barrel on Tuesday, down from about $1.35 a barrel in the previous session and around $1.45 on Friday, sources said.
Meanwhile, sustained buying interest for physical cargoes of 10ppm gasoil helped firm cash differentials of the fuel to minus 3 cents a barrel to Singapore quotes on Tuesday, up 3 cents a barrel from a 2018 low in the previous session. <GO10-SIN-DIF>
TENDERS
- Pakistan's PSO bought two 10,000 tonne cargoes of jet fuel for delivery to Karachi on April 1-15 from Renish Petrochem, trade sources said.
- One of the cargoes was sold at a premium of $6.23 a barrel to Middle East quotes on a CFR basis while the second was sold at a premium of $6.47 a barrel to Middle East quotes on a CFR basis.
- South Africa's PetroSA is seeking three 16,800-tonne cargoes of 50ppm sulphur gasoil in a tender that closes on March 7 with a two day validity.
- The cargoes are due for delivery into Mossel Bay on May 1-3, June 1-3 and July 1-3.
- For more information, please see.
RISING DEMAND
- Oil futures rose on Tuesday for a third session, underpinned by robust demand forecasts and as ministers from OPEC touted the strength of its agreement to cut output to bolster prices.
- The International Energy Agency (IEA) said on Monday that global oil demand was expected to grow over the next five years, while output from producers in the Organization of the Petroleum Exporting Countries (OPEC) would rise at a much slower pace.
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