Asia’s cash discounts for spot cargoes narrowed to almost 30 cents a barrel after the emergence of several buyers for December-loading parcels and an uptick in spot market activity.

The lack of lower-priced sellers also contributed to the narrower discounts.

More spot discussions for January physical cargoes will emerge in the next few days, one trade source said.

A wider price differential between northwest Europe and Asia for December supported the market slightly, with the exchange of futures for swaps (EFS) spread at a discount of almost $50 per metric ton at the close of business.

Refining margins for the transport and industrial fuel were little changed, however, with downside pressures from a softer futures market.

Jet fuel refining margins posted gains as buying activity in the swaps market remained firm.

Regrade narrowed back to a discount of 20 cents, with upbeat buying activity in the physical jet fuel markets being a key supporting factor.

SINGAPORE CASH DEALS

– One deal for 10ppm gasoil and one deal for jet fuel

REFINERY NEWS

– Kuwait’s state refiner KNPC on Saturday said that refining operations at its Mina Abdullah oil refinery had been affected by a leak of water used to cool production units at the plant.

– Oil futures rose on Monday as geopolitical tension in the Middle East was back in focus, spurring concerns about supply from the region, but uncertainty over OPEC+ voluntary output cuts and global fuel demand growth clouded the sector’s outlook.

– Venezuela’s oil exports remained almost unchanged in November at 651,000 barrels per day (bpd) even as an easing of U.S. sanctions allows sales to trading houses, according to shipping and tanker tracking data.
Source: Reuters (Reporting by Trixie Yap, Editing by David Goodman)