MOSCOW (MRC) -- Asia's cash premiums for 10 ppm gasoil dipped on Monday, hurt by a weaker deal in the physical market, but traders expect the market to remain tight in the near term, reported Reuters.
Cash premiums for gasoil with 10 ppm sulphur content dipped to 73 cents per bbl to Singapore quotes, compared with 86 cents per bbl on Friday.
Refining margins, also known as cracks, for 10 ppm gasoil rose to a two-month high of USD14.48 a bbl over Dubai crude during Asian trading hours, up from USD14.08 per bbl on Friday.
Meanwhile, jet fuel cracks climbed to USD12.63 per bbl over Dubai crude on Monday, against USD11.78 a bbl at the end of last week. Cash differentials for jet fuel flipped to a premium of 9 cents per bbl to Singapore quotes on Monday, compared with a discount of 2 cents per bbl on Friday.
As MRC informed before, US commercial crude stocks fell 3.48 million barrels to 413.96 million barrels in the week ended Sept. 17, to more than 8% below the five-year average, Energy Information Administration data showed. Stocks were last lower Oct. 5, 2018.
We remind that in late August, 2021, US crude stocks dropped sharply while petroleum products supplied by refiners hit an all-time record despite the rise in coronavirus cases nationwide, the Energy Information Administration said. Crude inventories fell by 7.2 million barrels in the week to Aug. 27 to 425.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop. Product supplied by refineries, a measure of demand, rose to 22.8 million barrels per day in the most recent week. That's a one-week record, and signals strength in consumption for diesel, gasoline and other fuels by consumers and exporters.
We also remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, EIA said in a monthly report earlier last year, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC