Asian refining margins rise on Colonial pipeline cyberattack

London, (Quantum Commodity Intelligence) – Asian refining margins for gasoline and middle distillates rose on Monday as the weekend attack on the US's main products pipeline network to the eastern seaboard boosted swaps prices.

Jet kero, 10ppm diesel and gasoline all rose on Monday, compared with Friday's levels, with only naphtha being held in check, largely due to the expected return of Japanese refineries.

The attack on the Colonial pipeline, which threatens to disrupt half of east coase supplies, pushed up front month diesel cracks versus August cash Brent to $5.64/b – the highest level in more than two months.

Jet kero cracks rose to $3.90/b, almost four times higher than where they were in early March.

Crude piled on more than $1/b by 16.30 Singapore time compared to Friday as it was dragged higher by the distillate complex.

Higher sulfur (above 3.5%) fuel oil on a FOB Singapore basis fell back to the lowest level in months as higher crude as well as news that the bunkering hub would ban vessels from India hit swap values.

Colonial's pipeline transports 2.5 million barrels each day, taking refined gasoline, diesel fuel and jet fuel from the Gulf Coast up to New York Harbor and New York's major airports.