Asia’s middle distillates markets saw more spot activity for January cargoes as a handful of northeast Asian refiners continued their offers, but margins were overall little changed amid softer ICE gasoil futures.

Separately, spot market premiums GO10-SIN-DIF continued their incline for the sixth straight session owing to the backwardated swap market structure and also consistent buying interest for January shipments in the open market.

However on the tenders front, even more refiners started offering January shipments – with both SK Energy and FPCC in the market for second-half of the month loaders – stoking concerns on sufficient supply despite a lack of direction from China.

A closed east-west arbitrage contributed to further market weakness, with the exchange of futures for swaps (EFS) maintaining at $30-40 per metric ton for January and February.

Refining margins for the fuel fell to slightly above $22.50 a barrel.

Likewise, jet fuel refining margins were little changed though regrade slipped further to a premium of 50 cents as swap sellers emerged again.

SINGAPORE CASH DEALS

– No deals for both fuels.

NEWS

– China’s diesel exports in November were down 44.9% from last year at 1.16 million metric tons, data showed on Monday, as domestic demand remains above pandemic levels but faces continued headwinds from the country’s property slowdown.

– Two major freight firms including MSC, the world’s biggest container shipping line, said on Saturday they would avoid the Suez Canal as Houthi militants in Yemen stepped up their assaults on commercial vessels in the Red Sea.

– Oil rose on Monday as attacks by the Houthis on ships in the Red Sea raised concerns of oil supply disruptions andRussia’s plan to lower exports in December provided additional support.
Source: Reuters (Reporting by Trixie Yap; Editing by Shailesh Kuber)