Refiners start August sales for diesel, jet fuel

Asia's diesel market activity turned even more upbeat as several refiners resurfaced to offload their regular requirements for August, against a backdrop of rising expectations for higher refining runs regionally.

At least two northeast Asian refiners sought to sell August cargoes of 10ppm and 500ppm sulphur gasoil via tenders that close tomorrow.

The east-west price spreads widened further to discounts of nearly $85 per metric ton , reflecting the softness in Asian swaps compared with ICE gasoil futures — though July contracts will expire by the end of the week.

Refining margins (GO10SGCKMc1) closed the trading session firmer from the previous close at around $47.4 a barrel.

Cash differentials (GO10-SIN-DIF) gave back earlier gains, easing slightly to $1.24 a barrel, tracking a lack of window deals and a narrower paper market backwardation.

Meanwhile, August offers for jet fuel also surfaced — in line with the rising sales activity for diesel. The Asia-U.S. west coast arbitrage remained mildly open, though shipping enquiries on this route remained scant so far.

Regrade (JETREG10SGMc1) slipped into deeper discounts of nearly $1.90 a barrel, reflecting the softer jet fuel markets compared with gasoil.

SINGAPORE CASH DEALS

- No deal for gasoil or jet fuel

NEWS

- South Korean prosecutors said on Monday they have charged the country's four oil refiners and four employees at two of the refiners with colluding on fuel prices — anti-competitive actions that they said caused $17 billion in harm.

- Iran has begun talks with Japanese companies under a U.S. sanctions waiver allowing it to resume oil sales, though prospective buyers are seeking a longer waiver and reassurances about ship safety, three Iranian and Western sources said.

- Abu Dhabi National Oil Company has sold about 16 million barrels of Emirati crude at wider discounts in a fifth spot tender issued since June, trade sources said, underscoring a surge in spot supply.

- Oil prices fell by more than 1% on Monday after OPEC+ agreed to further increase its output targets from August while exports from key producers via the Strait of Hormuz are recovering, potentially adding to global supplies.

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