Asia’s middle distillates markets saw slightly more muted trading activity both on the paper and physical cargo front, with prices also little changed, as traders await for more clues on November refiner sales activity.

Traders were still awaiting for more sellers to emerge with their November cargoes, though some were cautious whether volumes could differ from October given the current backwardated market structure which gives sellers an advantage to sell front-month loading cargoes.

Refining margins for the 10ppm sulphur gasoil reversed gains in the past two sessions and slipped below $14 a barrel, as strength in crude markets offset little movements in the paper swap markets.

The backwardated price structure in paper markets deepened slightly, as prompt buying activity stayed firm.

Spot cash premiums gained as buying interest stayed firm but sellers were unwilling to meet their expectations, with the market closing in a stand-off.

On the jet fuel front, activity was equally thin, though China’s October exports are still estimated at 1.8-1.9 million metric tons.

Regrade was little changed from the previous trading session at discounts of around 20 cents a barrel.

SINGAPORE CASH DEALS

– No deals for both fuels

INVENTORIES

– U.S. crude stocks rose last week, while fuel inventories fell sharply, the Energy Information Administration said on Wednesday, as back-to-back major hurricanes drove gasoline demand to nearly a three-year high.

– Singapore’s middle distillates inventories edged down by 1.4% week on week as net exports of both diesel/gasoil and jet fuel/kerosene gained, though Middle East diesel/gasoil barrels stayed prevalent, official data showed on Thursday.

REFINERY NEWS REF/OUT

– Petron Malaysia Refining & Marketing says refinery will be undergoing maintenance

NEWS

– Oil prices rose on Thursday underpinned by a spike in fuel demand as a major storm barrelled into Florida and concerns about potential supply disruptions in the Middle East amid heightened tensions between Israel and major oil producer Iran.

– China’s exports are likely to have risen at the slowest pace in five months in September, suggesting manufacturers are no longer rushing out orders ahead of tariffs from several trade partners and that global demand for Chinese goods is softening.
Source: Reuters (Reporting by Trixie Yap; Editing by Mrigank Dhaniwala)