SINGAPORE: Asia’s 10-ppm sulphur gasoil margins were driven by volatile oil futures and continuous tight prompt supply expectations in northwest Europe barges, with strikes continuing at some refineries in France.
Cash differentials for 10ppm sulphur gasoil firmed by 8 cents as buyers re-emerged for spot April parcels.
More cargoes are expected from South Korea, said one northeast Asian refinery source, saying that the producers have yet to clear their April inventories.
Jet fuel refining margins fell as cautious trading sentiment continued to plague the market, with competitively priced offers in the market for one April parcel and a subsequent deal.
Supply of the aviation fuel from northeast Asia should still remain ample, as Japan-based refiners should start offering April cargoes soon, a few trading sources said.
Forward month regrade widened even further as a result to a discount of $4.45 per barrel, a four-month high since mid-November last year.
The arbitrage differential between Asia and northwest Europe on the swaps front widened to a discount of $52.18 per barrel - but were still deemed closed by participants because of the freight costs.
US crude oil and product inventories were seen falling last week, a preliminary Reuters poll showed on Monday. Distillate inventories, which include diesel and heating oil, were expected to have decreased by about 1.5 million barrels last week.
Oil rose on Tuesday, extending a recovery from a 15-month low hit the previous day, as the rescue of Credit Suisse eased worries about global banking sector risks that could hit economic growth and fuel demand.
About 36% of operational staff at TotalEnergies’ refineries and depots were on strike on Tuesday morning, a company spokesperson said, as the industrial action against the government’s pension changes stretched into its 14th day. TotalEnergies plans to shut its Normandy oil refinery, a company spokesperson said on Tuesday as a strike against government changes to pensions entered its 14th day.
Trafigura helps to export limited supplies of Russian refined products within the rules of international sanctions and is considering whether to resume more trade in its oil, CEO Jeremy Weir said on Tuesday.
The recent fall in oil prices due to banking jitters is speculative and oil will hit $140 a barrel by the end of the year, hedge fund manager Pierre Andurand of Andurand Capital said on Tuesday.