Asia’s diesel spot market activity on the trading window stayed tepid, as seen from a lack of physical cargo deals, though timespreads and cash differentials recovered slightly.
Talks of some China-origin cargoes for December under discussions surfaced, though price levels were in the discounted territory given the prompt loading timeline.
Some sporadic December buying interest for gasoil could still emerge from a handful of key regional buyers, especially Indonesia, several trade sources say, though further details could not be confirmed.
Meanwhile, jet fuel spot sales were also upbeat from a handful of China sellers and discussion levels remained at premiums, multiple trade sources said.
Limiting jet fuel market gains were the narrower arbitrage price spreads between Asia and either northwest Europe or the U.S. west coast.
The 10ppm sulphur gasoil refining margins (GO10SGCKMc1) fell to around $21.6 a barrel.
Deals on the trading window were nowhere to be seen for a fourth straight session this week, with cash differentials (GO10-SIN-DIF) regaining some ground to $1.69 a barrel from a slightly backwardated structure.
Regrade (JETREG10SGMc1) remained in a similar premium range of 60-70 cents per barrel.
SINGAPORE CASH DEALS
– No deal for jet fuel or gasoil
INVENTORIES
– U.S. crude stocks climbed as imports rose to an 11-week high, the EIA said on Wednesday, while fuel inventories also increased as refining activity ticked higher.
– Singapore’s distillate stockpiles declined back to four-month lows despite a decline in net exports of diesel and jet fuel, official government data showed on Thursday.
REFINERY NEWS
– BP’s 440,000-barrel-per-day oil refinery in Whiting, Indiana, has returned to normal operations following a planned maintenance turnaround in September and a fire in October, two sources said.
NEWS
– Independent refiners in China have received their first batch of crude oil import quotas for 2026 that can be used for cargoes arriving by the end of the year, multiple trade sources said on Thursday.
– When Shandong Yulong Petrochemical opened its Singapore office a year ago, the company staged a lion dance to herald prosperity for the new $20 billion oil refiner at the centre of modernisation efforts in its home province in China.
– A Western-sanctioned vessel with Russian oil destined for Indian Oil Corp has had discharge of the cargo delayed at a port in eastern India due to a hold-up in online verification of insurance cover provided by a Russian insurer, three industry sources with direct knowledge of the matter said.
Source: Reuters
