- News
- Insights
- Bunkerworld .
- Singapore physical 10 ppm gasoil crack hits 6-month high on tight supply balances
.
-
May 26
-
May 18
-
May 13
-
May 11
-
May 4
-
Apr 26
-
Apr 22
-
Apr 11
-
Apr 7
-
Apr 6
-
Mar 23
-
Mar 15
-
Mar 8
-
Feb 28
-
Feb 11
-
Feb 2
-
Feb 1
-
Jan 17
-
Dec 27
-
Dec 10
-
Dec 3
-
Nov 25
-
Nov 16
-
Oct 29
-
Oct 25
-
Oct 12
-
Oct 8
-
Oct 4
-
Sep 30
-
Sep 29
-
Sep 24
-
Sep 23
-
Sep 17
-
Sep 10
-
Sep 9
-
Sep 6
-
Sep 2
-
Aug 30
-
Aug 27
-
Aug 23
-
Aug 20
-
Aug 17
-
Aug 13
-
Aug 9
-
Aug 3
-
Jul 29
-
Jul 26
-
Jul 22
-
Jul 15
-
Jul 5
-
Jul 2
-
Jun 28
-
Jun 22
-
Jun 18
-
Jun 11
-
Jun 7
-
Jun 4
-
May 31
-
May 28
-
May 25
-
May 21
-
May 5
-
Apr 28
-
Apr 27
-
Apr 26
-
Apr 23
-
Apr 22
-
Apr 19
-
Apr 16
-
Apr 15
-
Apr 14
-
Apr 13
-
Apr 9
-
Apr 7
-
Apr 5
-
Mar 31
-
Mar 23
-
Mar 19
-
Mar 17
-
Mar 12
-
Mar 5
-
Mar 4
-
Mar 3
-
Mar 1
-
Feb 25
-
Feb 24
-
Feb 22
-
Feb 17
-
Feb 12
-
Feb 10
-
Feb 5
-
Feb 1
-
Jan 27
-
Jan 25
-
Jan 22
-
Jan 20
-
Jan 18
-
Jan 13
-
Jan 11
-
Jan 8
-
Jan 7
-
Jan 4
-
Dec 31
-
Dec 28
-
Dec 24
-
Dec 21
-
Dec 14
-
Dec 9
-
Dec 9
-
Dec 8
-
Dec 4
-
Dec 2
-
Dec 1
-
Nov 30
-
Nov 27
-
Nov 25
-
Nov 23
-
Nov 17
-
Nov 16
-
Nov 11
-
Nov 10
-
Nov 6
-
Nov 5
-
Nov 4
-
Nov 2
-
Oct 29
-
Oct 27
-
Oct 23
-
Oct 22
-
Oct 20
-
Oct 14
-
Oct 12
-
Oct 6
-
Oct 5
-
Sep 30
-
Sep 29
-
Sep 25
-
Sep 21
-
Sep 18
-
Sep 16
-
Sep 15
-
Sep 14
-
Sep 9
-
Sep 8
-
Sep 4
-
Sep 2
-
Aug 31
-
Aug 27
-
Aug 25
-
Aug 20
-
Aug 19
-
Aug 14
-
Aug 12
-
Aug 7
-
Aug 6
-
Aug 4
-
Jul 31
-
Jul 30
-
Jul 29
-
Jul 28
-
Jul 24
-
Jul 20
-
Jul 16
-
Jul 13
-
Jul 9
-
Jul 9
-
Jul 7
-
Jun 30
-
Jun 26
-
Jun 25
-
Jun 23
-
Jun 22
-
Jun 22
-
Jun 19
-
Jun 16
-
Jun 10
-
Jun 9
-
Jun 5
-
Jun 2
-
May 29
-
May 26
-
May 21
-
May 20
-
May 15
-
May 12
-
May 8
-
May 5
-
May 4
-
May 1
-
Apr 28
-
Apr 24
-
Apr 23
-
Apr 22
-
Apr 21
-
Apr 20
-
Apr 17
-
Apr 16
-
Apr 16
-
Apr 3
The Singapore physical 10 ppm sulfur gasoil crack to front-month cash Dubai hit a six-month high, with the boost coming on the back of tighter supply balances seen in the coming months.
At the Asian close Feb. 8, the benchmark Asian ultra low sulfur diesel physical crack to front-month cash Dubai climbed up 9 cents/b to $6.42/b. This is the highest the crack has been since Aug. 6, 2020, when it was assessed at $6.46/b, S&P Global Platts data showed.
The upward climb in the crack underscores the slow, but steady improvement seen in the Asian gasoil complex since the end of 2020, following a period of severe demand destruction caused by multiple lockdowns and varying degrees of social distancing measures.
But traders were quick to caution that although the physical gasoil crack is expected to emerge stronger this year, the product still faces an uphill climb to recovery with the product spread to crude still trending at sharply lower levels as compared to a year ago. This was borne out with Platts data showing that on Feb. 7, 2020, the FOB Singapore 10 ppm sulfur gasoil crack to front month cash Dubai had been assessed 52.7% higher at $13.58/b.
At its weakest, the physical gasoil crack to front-month cash Dubai had been assessed at an all time historical low of just $1.63/b on Sept. 24, 2020.
Market participants said that the dismal margins for gasoil last year, coupled with even worse margins for its co-distillate jet fuel, led several refiners to implement discretionary run cuts in an effort to rein in production and stem losses.
Over time however, and with the extended run cuts still on-going, this has resulted in supply balances tightening and consequently spurring margins upwards.
With the exception of China, leaner production volumes have been seen from the other major North Asian gasoil supply centers of Japan and South Korea, with this helping to cushion some of the impact of the higher export volumes seen from China over February.
The leaner production volumes from Japan was also noted in an S&P Global Platts Analytics report released late Feb. 3, which stated that the country's gasoil output was lower year on year by 16,000 b/d as refiners cut back on crude runs.
“Asian gasoil balances could see further tightening over the next few months with upcoming refinery maintenance, which could see some operators opt for earlier and longer turnarounds due to the depressed margins. Several refineries such as ENEOS Mizushima and Chiba have announced CDU shutdowns lasting up to four months starting in February," Platts Analytics said in another report Feb. 5.
In addition, Platts Analytics also noted that a flow of Asian gasoil barrels to the West could further drain volumes out of the region, with East to West movements supported by lower freight rates which have been improving otherwise unfavorable arbitrage economics.
"Additional movement of gasoil from Asia to Europe could begin to tighten gasoil balances in the East of Suez ... Platts data showed clean tanker rates between West Coast India to UK Continent currently at the lowest since February 2018," the report said.
Bunkerworld .,