Asia’s 10 ppm sulphur gasoil cracking margins reversed past two sessions of gains and slipped back to around $31 a barrel against the backdrop of stronger oil futures and sufficient regional supplies.

October-loading cargoes from Asian refiners remained ample for now, a source said, adding that markets were still waiting for October loaders from China. South Korea’s SK Energy offered more cargoes for end-October delivery after selling more than 10 cargoes in the past two weeks.

Concerns remained on disruption of supplies from the Russian ban, as evidenced from the wider backwardation between prompt and forward price swaps.

Cash differentials for the transport and industrial fuel were firmer at $2.84 a barrel, reflecting the tighter prompt market expectation – though discussions were thin in the open trading market.

Jet fuel refining margins kickstarted the week at a decline of 2.4% from the previous session, though the market remained upbeat because of opened arbitrage window to the West and some prompt demand regionally. Taiwan’s CPC Corp issued a tender to buy Oct-Nov delivery jet fuel.

Regrade widened slightly despite the strength in jet fuel market fundamentals as gasoil supply is expected to still remain tighter.

SINGAPORE CASH DEALS

– No gasoil deal, one jet fuel deal.

REFINERY NEWS

– Firefighters managed to put out a fire at Kuwait’s Mina Al Ahmadi oil refinery with no injures, state news agency (KUNA) said late on Friday, adding that production and exports were unaffected.

– The large crude distillation unit (CDU) was shut on Friday at TotalEnergies’ TTEF.PA 238,000 barrel-per-day (bpd) Port Arthur, Texas, refinery following an interruption of feed, said people familiar with plant operations.

NEWS

– Oil prices rose on Monday as investors focused on a tighter supply outlook after Moscow issued a temporary ban on fuel exports while remaining wary of further rate hikes that could dampen demand.

– The Russian government has approved some changes to its fuel export ban, lifting the restrictions for fuel used as bunkering for some vessels as well as diesel with high content of sulphur, a government document showed on Monday.

– German logistics giant DHL is teaming up with energy firm and South African petrochemicals firm Sasol on the expansion of sustainable aviation fuel (SAF) production in Germany, HH2E said on Monday.
Source: Reuters (Reporting by Trixie Yap; Editing by Maju Samuel)