Asian spot prices float while inventory levels sink.

摘要

In the week to Feb. 8, gasoil and jet-kerosene margins and prices were supported by falling inventories, as stocks held in Singapore dropped to a five-week low; gasoil margins climbed to a nine-month high by Friday. The stockdraw was due in part to fewer diesel shipments arriving from Taiwan, amid an unexpected hydrotreater outage at Formosa Petrochemical's Mailiao refinery/PC complex, as well as heavier flows from Singapore to Indonesia, Malaysia, and Hong Kong. Prompt gasoil demand was also seen from Africa, while China Aviation Oil continued to pick up jet fuel cargoes, adding to its hefty volumes for Feb. and March. The declining inventories come at a time when market players are expecting a tighter market going forward, as many refineries across the region and in the Middle East plan to shut down for seasonal turnarounds during Feb.-April. Although, traders noted, once the plants return from maintenance fundamentals may sour as demand is not expected to increase fast enough to offset a sharp rise in supplies. Similarly, diesel production capacity in China is seen soaring in the months ahead, but with China's economic growth not strong enough to soak up the extra material diesel exports from the country are slated to climb, boosting availability and weighing on prices. Adding to the potential downside, Vietnam, one of Asia's top importers, may leave more product on the market as Petrolimex is expected to skip its annual term imports of gasoil due to ample domestic supplies.