SINGAPORE: The Singapore 10 ppm sulfur gasoil cash differential advanced 16 cents/b week on week to 45 cents/b Wednesday, a year-to-date high since S&P Global Platts moved its benchmark to 10 ppm sulfur gasoil from 500 ppm sulfur gasoil on January 1.
The higher differentials come on the back of an improvement in the Asian gasoil market fundamentals, underpinned by a pick-up in regional demand amid refinery turnarounds.
The backwardated market structure has also strengthened, with the front-month April/May paper structure rising 17 cents/b week on week to 44 cents/b at Wednesday’s Asian close.
In India, strong domestic demand reduced exports of gasoil, while imports rose.
“Demand from AG/India is getting better because of the turnarounds in India and [India] importing; less export/more demand,” a trader said.
Gasoil cargoes coming from the Persian Gulf to Singapore have also eased, market sources said.
“Now Europe is picking up, better to ship west of Suez,” a second trader said.
The Exchange of Futures for swaps — the difference between the Asian and European gasoil markets– has fallen deeper into negative territory. The EFS declined 62 cents/mt week on week to minus $4.59/mt Wednesday. It was notionally valued at minus $5/mt Thursday morning.
