Asian oil prices rise on China data, geopolitical tensions

London (Quantum Commodity Intelligence) – Middle East crude oil prices moved higher Tuesday as favorable trade data from China bolstered prices, while the latest attack on Saudi oil facilities heightened tensions in the region.

Dubai cash for June delivery was assessed at $61.55b on April 13 (16.30 Singapore time), up $0.50/b from Monday's Singapore close, while DME Oman futures for June settled $61.75/b at the Asian close, up $0.49/b.

China's data put March crude imports up 21% year-on-year at 11.69 million bpd, although March 2020 was the height of China's demand slump at the start of the global coronavirus pandemic. Imports were little changed month-on-month, allaying fears of a slowdown in Chinese buying.

Global crude markets were also underpinned by reports of Yemini Houthi rebels launching drones and missiles targeting Saudi Aramco plants in Jeddah and Jubail.

Cash Brent (BFOE) improved $0.44/b to $63.62/b versus Monday's Singapore close, maintaining the June EFS above $3/b.

Products

In the gasoline market, three physical deals were heard for 95 RON at $72-72.10/b, widening the differential to 92 RON.

The 92 RON gasoline cash crack, meanwhile, flatlined at $6.55/b.

92 RON gasoline swaps were 25-30 c/b higher on the day, a rise that could not keep up with crude.

Naphtha spot and swaps broadly flatlined on Tuesday, leaving cracks softening yet again. Spot cracks were marked at $92/mt versus cash Brent, down $3/mt on the day and representing a five-day slide.

A flurry of cash deals saw the 10ppm diesel crack check its bull run.

Six deals at -$0.15/b versus first half May swaps meant the spot crack eased to $3.63/b from $4.10/b.

Jet fuel spot levels tracked 10ppm lower with little news to prompt purchases.

High sulfur fuel oil prices rose to $351/mt for 180cst and $357.50/mt for 380cst - far outstripping the rise in crude and leaving the spot crack versus cash Brent at a five-day high.