Commodities
Northeast Asian Diesel, Jet Exports to Recover in May, Reuters Analysis Shows
Diesel and jet fuel exports from Northeast Asia are set to rebound from April lows in May, helping ease product prices to some extent, according to a Reuters analysis on Monday.Reuters data showed that diesel exports from South Korean refiners, including SK Energy, GS Caltex, S-Oil, and Hyundai Oilbank, more than doubled to at least 10 cargoes in May, compared with April.In Taiwan, Formosa Petrochemical sold one cargo of each, 300,000 barrels of low-sulfur and high-sulfur diesel, after a muted flow in April.However, volumes remained below pre-war levels of at least 25 cargoes, Reuters said.Trade sources cited by the news agency said jet fuel exports also rose, with five 300,000-barrel cargoes sold for May loading, up from three in April.Along with the higher jet and diesel exports, corresponding Asian refining margins declined to around $62 per barrel on Monday, from a record of $86/bbl on March 30, but remained three times higher than pre-war levels, according to LSEG data cited by Reuters.Reuters tender records also showed that, last week, premiums for Northeast Asian diesel cargoes reduced by about half to below $5/bbl to Singapore quotes on a free-on-board Korea basis, from at least $10/bbl two weeks earlier.