May 18, 2022

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The Car & Automotive Devotees

Asia Distillates Gasoil cash premiums rise to 6-week high

2 min read

SINGAPORE, Dec 23 (Reuters) – Asia’s cash premiums for 10 ppm gasoil rose to their highest in over a month on Thursday, after Singapore middle distillate inventories dropped to a two-week low.

Cash premiums for gasoil with 10 ppm sulphur content climbed to 75 cents per barrel to Singapore quotes, a level not seen since Nov. 11. The differentials were at a 63-cent premium on Wednesday.

Refining margins, also known as cracks, for 10 ppm gasoil rose to $13.44 a barrel over Dubai crude during Asian trading hours, compared with $13 per barrel a day earlier.

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OMICRON MARS JET FUEL OUTLOOK

– Asia’s jet fuel refining margins are on track to double by end-2021 from the previous year, but traders and analysts say a recovery in aviation demand to pre-pandemic levels could still be years away. read more

– Airlines globally trimmed their capacity in recent weeks, removing 13.5 million seats from January-March schedule this week, aviation data firm OAG said. The capacity, which stood about 35% higher this week from a year earlier, was still 23.2% lower compared with the corresponding period in pre-pandemic 2019, OAG data showed.

GLOBAL OIL DEMAND

– Global oil demand roared back in 2021 as the world began to recover from the coronavirus pandemic, and overall world consumption potentially could hit a new record in 2022 – despite efforts to bring down fossil fuel consumption to mitigate climate change. read more

– Gasoline and diesel use surged this year as consumers resumed travel and business activity picked up. For 2022, crude consumption is expected to reach 99.53 million barrels per day (bpd), up from 96.2 million bpd this year, according to the International Energy Agency. That would be a hair short of 2019’s daily consumption of 99.55 million barrels.

INVENTORIES

– Singapore’s middle distillate inventories slipped 1.4% to 7.9 million barrels in the week to Dec. 22, according to Enterprise Singapore data.

– Weekly Singapore middle distillate inventories have averaged 11.9 million barrels this year, compared with an average of 13.9 million barrels in 2020, Reuters calculations showed. This week’s stocks were 47.6% lower than a year earlier.

– U.S. distillate inventories, which include diesel and heating oil, rose by 396,000 million barrels in the week to Dec. 17 versus expectations for a 33,000-barrel rise, the Energy Information Administration said on Wednesday.

SINGAPORE CASH DEALS

– No gasoil deals, no jet fuel trades

ASSESSMENTS

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Reporting by Koustav Samanta

Our Standards: The Thomson Reuters Trust Principles.

https://www.reuters.com/markets/commodities/asia-distillates-gasoil-cash-premiums-rise-6-week-high-2021-12-23/