Asia’s spot cash differentials swung to a premium for the first time in one monthas January buying interest remained strong in the open market amid a lack of lower-priced sellers.

The steeper backwardation in the swaps market contributed to the gains as well, but a buy-sell gap limited serious discussions.
Meanwhile, trading activity in the market was mostly focused on the regrade spread differential, with physical markets seeing a lack of deals for the third straight session this week.

Refining margins GO10SGCKMc1, however, slipped to around $22 a barrel amid price weakness in the West overnight and limited activity in the swaps market.

Jet fuel refining margins JETSGCKMc1 also fell to slightly below $23 a barrel, but by a smaller margin with regrade JETREG10SGMc1 firmed further to around 73 cents a barrel, but ready sellers in the market capped overall gains.

SINGAPORE CASH DEALS O/AS

– No deals for gasoil or jet fuel.

INVENTORIES

– U.S. crude oil inventories fell last week, while fuel stockpiles rose, according to market sources citing American Petroleum Institute figures on Tuesday.

– Middle distillates stockpiles in the Fujairah Oil Industry Zone for the week ended Dec. 11 were at a two-week low of 3.039 million barrels, according to industry information service S&P Global Commodity Insights.

NEWS

– Oil prices extended losses on Wednesday, after falling by more than 3% to six-month lows on oversupply and demand concerns.

– Oil tanker Cururo is taking the long way from Houston to Chile: sailing the length of South America’s Atlantic coast, across the Strait of Magellan and heading up the Pacific coast before discharging.
Source: Reuters (Reporting by Trixie Yap; Editing by Shweta Agarwal)