Spot prices for diesel and heavies rise in Asia;jet fuel and lights move lower

摘要

Spot prices for bunker fuels at Singapore pulled out of a four-week downtrend during the week to Dec.6.Bunkers and fuel oils posted larger gains than gasoil did.Naphtha,on the other hand,came down from four weeks of price rises,ticking off a larger decline than jet/kerosene or 92-octane gasoline did.Outright spot prices for gasoil,the product's crack to Dubai crude,and its cash differentials at Singapore all increased over the week to Nov.29.Cracks on 10-ppm-sulfur gasoil rose by 84￠/bbl to end at $15.17/bbl while cash differentials for the product gained 99￠/bbl to end the week at $1.04/bbl-a high not seen since Nov.4.Gasoil supplies are being limited by Asian refinery run cuts,which were triggered by an oversupply.Diesel demand in India-the third-largest economy in Asia-is expected to see little growth through H1 2020,potentially pushing the country's exports of the product from 28MM mt(575K b/d)in the fiscal year ending in March 2020 to 36MM mt(740K b/d)in the following fiscal year.(Read a related stoty,”Indian diesel demand shorn decline in light of slowing economy,”on p.15.)Enterprise Singapore reported middle distillate inventories in Singapore extended the previous week's decline during the week to Dec.4 and their year-on-year surplus grew slightly to 225K bbl.