Asia Distillates-Paper activity picks up; Dec outlooks mixed

Asia’s middle distillates markets for the week were trading in a tight range, though physical December cargoes remained heavily discussed and Friday paper trades in full swing.

Paper trading activity on the window picked up on the last trading day for November cargoes, reversing the early week’s tepid activity.

Term negotiations came into full play, with at least one more major refiner in Taiwan offering their sale cargoes for next year loading. Discussions were mostly at premiums of 10-30 cents a barrel so far, multiple trade sources said.

December market outlooks remained mixed in the spot market, as evidenced by the differing price discussion levels, with refiners’ spot sales done at premiums in the early week but the market falling to slight discounts in the two trading sessions.

On the jet fuel front, discussions remained muted as sellers were still missing in action from December spot sales, despite a healthy regrade value, one source said.

Refining margins for 10ppm sulphur gasoil were around 50 cents higher week on week, closing the trading week at around $15.4 a barrel.

Spot premiums for 10ppm sulphur gasoil were softer at 70 cents per barrel.

Regrade was little changed week on week, still shy of hitting $1 a barrel for now – though the market remained bullish as evidenced by discussions still going on at premiums, one source said.

SINGAPORE CASH DEALS

– No deals for both fuels

INVENTORIES

– U.S. gasoline inventories fell to their lowest levels in two years as fuel supplies drew down unexpectedly last week amid strong demand, while crude oil stockpiles rose by more than expected, the Energy Information Administration (EIA) said on Thursday.
– Gasoil stocks independently held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by over 18% in the week to Thursday to their highest in six weeks, data from Dutch consultancy Insights Global showed.

NEWS

– China’s refinery throughput in October fell 4.6% from last year, down from the year earlier for a seventh month, as plant closures offset the ramp-up of a newly started complex and demand from holiday travel, official data showed on Friday.

– Oil prices fell on Friday as investors weighed signs that demand in top crude importer China continues to underperform amid the country’s uneven economic recovery and expectations of fewer Federal Reserve rate cuts.
Source: Reuters (Reporting by Trixie Yap; Editing by Shreya Biswas)