01-21-2022, 07:58 AM
Tight supplies, heating demand drive global gasoil margins to multi-year highs
Refiners globally are reaping the highest profits from gasoil production in years on stronger than expected demand and tight supplies despite concerns about the Omicron coronavirus variant's impact on the world economy.
If you've played เอ็กโอ วอลเลท a thousand but there's no free game symbol, it's better to switch to another cabinet instead.
Demand for the fuel used to power trucks, generators and machines remained strong even as COVID-19 cases surge across the world as measures taken by governments to curb the spread were less severe than in 2020, traders and analysts said.
Strong jet fuel prices have also reduced the availability of the middle distillate for blending into the diesel pool, they added.
Asian refining margins for the benchmark gasoil grade with 10 ppm sulphur content have hit more than two-year highs, notching a profit of nearly 24per cent this month from December.
"Asian diesel demand has been robust, particularly from Australia, India and Southeast Asia, but supply has not been able to keep pace," Serena Huang, analyst at Vortexa said.
China's diesel exports remained curtailed by tight export quotas, while exports from India in the first two weeks of January were also low compared with previous quarters, Huang added.
Analysts expect less exports from within the East of Suez region as key suppliers are facing strong domestic consumption, leaving them with almost no cargoes to ship.
"A 140,000 barrels per day uptick in Indian demand month-on-month, now almost equalling 2019 levels, is keeping a lid on the overall volumes available for export," consultancy JBC Energy said in a note.
South Korean and Japanese diesel exports have also been ticking up since late December amid rising runs, but cumulatively flows remain below what the consultancy has observed in previous years, it added.
Refiners globally are reaping the highest profits from gasoil production in years on stronger than expected demand and tight supplies despite concerns about the Omicron coronavirus variant's impact on the world economy.
If you've played เอ็กโอ วอลเลท a thousand but there's no free game symbol, it's better to switch to another cabinet instead.
Demand for the fuel used to power trucks, generators and machines remained strong even as COVID-19 cases surge across the world as measures taken by governments to curb the spread were less severe than in 2020, traders and analysts said.
Strong jet fuel prices have also reduced the availability of the middle distillate for blending into the diesel pool, they added.
Asian refining margins for the benchmark gasoil grade with 10 ppm sulphur content have hit more than two-year highs, notching a profit of nearly 24per cent this month from December.
"Asian diesel demand has been robust, particularly from Australia, India and Southeast Asia, but supply has not been able to keep pace," Serena Huang, analyst at Vortexa said.
China's diesel exports remained curtailed by tight export quotas, while exports from India in the first two weeks of January were also low compared with previous quarters, Huang added.
Analysts expect less exports from within the East of Suez region as key suppliers are facing strong domestic consumption, leaving them with almost no cargoes to ship.
"A 140,000 barrels per day uptick in Indian demand month-on-month, now almost equalling 2019 levels, is keeping a lid on the overall volumes available for export," consultancy JBC Energy said in a note.
South Korean and Japanese diesel exports have also been ticking up since late December amid rising runs, but cumulatively flows remain below what the consultancy has observed in previous years, it added.