Asia’s middle distillates markets continued to record more January spot sale activities from refiners, though paper swap discussions were slightly winding down.
Refiner sales were in full swing for January spot cargoes, with China oil majors also joining in the mix to sell jet fuel ahead of an expected announcement soon for fuel export quotas next year.
Jet fuel exports are likely to be the most lucrative for China’s major sellers even in next month, one trade source said.
Meanwhile, some persistent production troubles at a major refinery site in Hokkaido proved slightly supportive for the market, though it remains to be seen if buyers there still need more spot kerosene for winter demand.
Japan’s imports of jet fuel and kerosene for December are still slated for a fresh high in December, shiptracking data showed.
Refining margins GO10SGCKMc1 extended weakness for a second straight session, trading near to $15.5 a barrel.
Cash differentials GO10-SIN-DIF closed the trading session firmer for the second straight day, plagued by a lack of lower-priced offers and firmer bids from trading major BP.
Regrade JETREG10SGMc1 was little changed, remaining at discounts of around 50 cents a barrel.
SINGAPORE CASH DEALS
– No gasoil deal, one jet fuel deal
INVENTORIES
– U.S. crude oil stocks fell on the week while fuel inventories rose, market sources said, citing American Petroleum Institute figures on Tuesday.
– Middle distillates stocks held at Fujairah Oil Industry Zone were at a three-month high of nearly 2.5 million barrels for the week ended Dec. 16, according to industry information service S&P Global Commodity Insights.
NEWS
– China’s gasoline exports rebounded in November to the highest level since August 2023, customs data showed on Wednesday, as exporters rushed to sell products before a cut in tax rebates came into effect this month.
– OPEC+ is wary of a renewed rise in U.S. oil output when Donald Trump returns to the White House, delegates from the group said, because more U.S. oil would further erode OPEC+ market share and hamper the producer group’s efforts to support prices.
– Indonesia’s plan to expand its biodiesel mandate from Jan. 1, which has fuelled concerns it could curb global palm oil supplies, looks increasingly likely to be implemented gradually, analysts said, as industry participants seek a phase-in period.
Source: Reuters (Reporting by Trixie Yap; Editing by Mohammed Safi Shamsi)