The middle distillates markets in Asia experienced limited trading activity at the beginning of the week, with a noticeable gap between buyers and sellers impeding transactions. Stakeholders are beginning to discuss potential offers from refiners for April supplies, particularly from major South Korean oil companies, although specific details remain unclear. The overall sentiment in the paper markets is mixed, with some traders expressing concerns about the adequacy of Asian supplies in the near future. Refining margins have suffered, dropping to over a month’s low at approximately $14.5 per barrel, which reflects the prevailing weakness in paper markets.
While cash differentials saw a slight increase during the trading session due to some higher bids for early April, the overall number of window offers remained low. The regrade was assessed at just above $1.1 per barrel at the close of trading, showing little variation from the previous session’s performance. In Singapore’s cash market, there were no recorded deals for both distillate fuels. In related news, newly confirmed U.S. energy secretary Chris Wright addressed oil and gas executives, emphasizing his commitment to expedite permitting processes while supporting the industry, according to reports.
Additionally, the Maritime and Port Authority of Singapore has introduced a new standard for methanol bunkering, further establishing Singapore’s status as the world’s leading bunkering hub. Meanwhile, the U.S. government is exploring potential ways to ease sanctions on Russia’s energy sector, potentially aimed at facilitating a diplomatic resolution to the ongoing Ukraine conflict. In China, Shandong Yulong Petrochemical, the country’s newest refiner, is anticipated to begin trial operations for its second crude oil processing unit later this month, according to sources familiar with the operation.