Asia’s diesel markets extended gains for a second straight session, reflecting the supply-demand strength in the near-term, though window trades remained thin.
Renewed concerns on tightening supply availability resurfaced for November, bolstering trading sentiment and supporting paper market structures in return.
Talks of fewer spot cargoes from South Korea, China and Taiwan Area ,China for November shipments will likely drive the market in the short run, several regional traders said.
Refining margins inched up slightly to around $21.3 a barrel.
The 10ppm sulphur gasoil cash differentials gained further to nearly $2.1 a barrel, despite lack of spot deals on the trading window.
Regrade held firm at premiums of 46 cents per barrel.
SINGAPORE CASH DEALS
– No deals for jet fuel and gasoil
INVENTORIES
– U.S. crude oil stockpiles were expected to have risen last week, while gasoline and distillate inventories likely fell, an extended Reuters poll showed on Tuesday.
– Middle distillates stocks independently held at Fujairah Oil Industry Zone accumulated further to 3.62 million barrels, nearly a /2-year high, for the week ended October 20, according to industry information service S&P Global Commodity Insights.
REFINERY NEWS
– Nigeria’s Dangote oil refinery restarted production at its 204,000 barrel per day gasoline unit as planned on October 19 at a run rate of 60%, industry monitor IIR said in an emailed statement to Reuters.
NEWS
– Russian company Russneft has supplied a first oil cargo to the newly built Kulevi oil refinery in Georgia this month, according to LSEG ship-tracking data and industry sources.
– Prompt Brent crude futures’ discount to the six-month contract reached its deepest since December 2023 on Monday, reflecting a growing view that supply is ample as OPEC+ and other producers increase output.
– The U.S. Department of Energy said on Tuesday it is looking to buy 1 million barrels of crude oil for delivery to the Strategic Petroleum Reserve, as it seeks to take advantage of relatively low oil prices to help replenish the stockpile.
Source: Reuters
