SINGAPORE, Feb 3 (Reuters) - Asia’s diesel markets were upbeat with timespread reamaining firm in March refiner spot sale activities, while jet fuel window deals stayed brisk.
Taiwan’s Formosa Petchem and CPC Corp were both offering March-loading 10ppm sulphur gasoil cargoes, in line with earlier expectations. (MDIS/TENDA)
Traders were also expecting remaining oil majors in northeast Asia to follow suit with their spot offers in the next few days, though opinion remained mixed over how supply fundamentals would pan out next month.
Refining margins (GO10SGCKMc1) inched back down further to around $20.3 a barrel, reversing most earlier gains to hit two-week lows.
The 10ppm sulphur gasoil cash differentials (GO10-SIN-DIF) extended gains to a premiums of 94 cents a barrel, with bids on the trading window still firm.
On the jet fuel front, markets remained weighed down by cautious expectations for supply-demand fundamentals.
Vitol continued sweeping up February-loading shipments on the trading window, with the trading major’s purchases for February 10-23 delivery at 500,000 barrels so far, records from trade sources showed.
Regrade (JETREG10SGMc1) discounts widened further to nearly $1 a barrel.
<h3>SINGAPORE CASH DEALS (O/AS)</h3>
<ul>
<li>No gasoil deal, one jet fuel deal</li>
</ul>
<h3>INVENTORIES</h3>
<ul>
<li>U.S. crude oil and distillate stockpiles were expected to have fallen last week, while gasoline inventories likely rose, a preliminary Reuters poll showed on Monday. (EIA/S)</li>
</ul>
<h3>NEWS</h3>
<ul>
<li>Chinese independent refiner Chambroad Petrochemical has bought one Canadian crude cargo for May delivery, four trade sources said on Tuesday, following a decline in Venezuelan crude supply into China.</li>
<li>U.S. natural gas futures plunged about 26% to a two-week low that nearly wiped out all of the gains seen since mid-January on forecasts for a big change in the weather from Arctic cold last week to near-normal levels through mid-February.</li>
<li>Oil prices fell on Tuesday, easing for a second day, as market participants weighed the possibility of a de-escalation in U.S.-Iran tensions, while a firmer dollar placed greater downside pressure on prices. (O/R)</li>
<li>Indian refiners will need a wind-down period to complete Russian oil deals before imports from that country can be halted, and they have so far not been ordered by the government to stop such imports, two refining sources said.</li>
</ul>
<h3>PRICES</h3>
<h3>MIDDLE DISTILLATES</h3>
CASH ($/BBL) ASIA Change Prev RIC
CLOSE Close
Spot Gas Oil 0.25% 85.49 -0.68 86.17 (GO25-SIN)
GO 0.25 Diff -0.28 0.02 -0.30 

<blockquote></blockquote>
Spot Gas Oil 0.05% 85.87 -0.85 86.72 (GO005-SIN)
GO 0.05 Diff 0.10 -0.15 0.25 

F&gt;
Spot Gas Oil 0.001% 86.71 -0.66 87.36 (GO10-SIN)
GO 0.001 Diff 0.94 0.04 0.89 

<blockquote></blockquote>
Spot Jet/Kero 85.11 -0.83 85.94 (JET-SIN)
Jet/Kero Diff 0.59 -0.04 0.63 (JET-SIN-DIF)
For a list of derivatives prices, including margins, please double
click the RICs below.
Brent M1 (BRENTSGMc1)
Gasoil M1 (GOSGSWMc1)
Gasoil M1/M2 (GOSGSPDMc1)
Gasoil M2 (GOSGSWMc2)
Regrade M1 (JETREGSGMc1)
Regrade M2 (JETREGSGMc2)
Jet M1 (JETSGSWMc1)
Jet M1/M2 (JETSGSPDMc1)
Jet M2 (JETSGSWMc2)
Gasoil 500ppm-Dubai Cracks (GOSGCKMc1)
<h3>M1</h3>
Gasoil 500ppm-Dubai Cracks (GOSGCKMc2)
<h3>M2</h3>
Jet Cracks M1 (JETSGCKMc1)
Jet Cracks M2 (JETSGCKMc2)
East-West M1 (LGOAEFSMc1)
East-West M2 (LGOAEFSMc2)
LGO M1 (LGOAMc1)
LGO M1/M2 (LGOASPDMc1)
LGO M2 (LGOAMc2)
Crack LGO-Brent M1 (LGOACKMc1)
Crack LGO-Brent M2 (LGOACKMc2)

Asia's diesel markets are showing positive signs with firm timespreads in March refiner spot sales, while jet fuel deals remain active. Taiwanese companies are offering March-loading gasoil cargoes, and oil majors are expected to follow suit. Refining margins have decreased to around $20.3 a barrel, and cash differentials for gasoil have risen to a premium of 94 cents a barrel. Meanwhile, U.S. crude and distillate stockpiles are anticipated to have fallen, and oil prices have declined amid easing U.S.-Iran tensions and a stronger dollar.

Reuters

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Asia Distillates-March diesel refiner sales upbeat; jet fuel window activity stays brisk