Asia’s middle distillates markets saw a record number of spot deals on the trading window for the first time this year, as selling pressures heated up with more than 1.2 million barrels being traded, while refiners emerged with more December spot sales.
A total of five deals were done on window for 10ppm sulphur gasoil, with Gunvor being the key seller. Vitol and Ampol were the major buyers during the trading session, with both traders in the market since last week for end-November to early December cargoes.
Sales could be brisk given the influx of swing supplies into Singapore since two weeks earlier for November arrival, amid expectations of rising supplies in northeast Asia soon.
November imports of Middle East and India-origin barrels of diesel/gasoil into Singapore are slated to hit multi-year highs, LSEG shiptracking data showed.
In tenders, South Korea’s GS Caltex kickstarted their December spot sales, offering at least four 300,000-barrel cargoes. SK Energy was also in the market to sell two 300,000-barrel cargoes.
Paper markets however were thinly discussed on window.
Refining margins GO10SGCKMc1 clawed back some losses and rebounded to around $15 a barrel, tracking the slight tick-up in paper markets.
Cash differentials GO10-SIN-DIF slipped by 7 cents, declining as deal levels were lower amid ready selling interest.
Meanwhile, some traders were still puzzled on the strengthening regrade JETREG10SGMc1, though the slight weakness in gasoil fundamentals could be the driver.
The spread shot back up to $1 a barrel, as some near-term buying activities in the paper markets also proved supportive
