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Northeast Asian Diesel, Jet Exports to Recover in May, Reuters Analysis Shows

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-- 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.

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