Asia’s spot diesel market extended recovery into the final trading day of the month, supported by expectations of lower volumes loading out from China next month.

The 10ppm sulphur gasoil spot differential was pegged at a small premium on Monday, after hovering in discounts since late June.

The paper market had turned into backwardation recently amid prospects of lower supplies which countered earlier demand concerns.

However, refining margins for gasoil closed the trading session lower at $12.74 a barrel, after reaching a three-week high last week.

Meanwhile, spot selling interest persisted in the jet fuel market, with one physical deal emerging on Monday.

The regrade spread widened slightly after closing at more than a month’s low.

In tenders, India’s MRPL offered more diesel and jet fuel for loading in October, closing on Oct. 1 with same-day validity.

SINGAPORE CASH DEALS

– No deal for gasoil, one deal for jet fuel

REFINERY NEWS

– Russia’s Antipinsky and Novokuibyshevsk oil refineries halted processing this month for planned maintenance, industry sources said.

– U.S. oil refiners are expected to have about 1.09 million barrels per day of capacity offline in the week ending Oct. 4, decreasing available refining capacity by 4,000 bpd, research company IIR Energy said on Monday.

NEWS

– Rising U.S. crude oil exports are boosting the prominence of Gulf Coast price benchmarks and buoying trading volumes on Houston contracts, eroding the significance of the Cushing, Oklahoma, storage hub.

– Russian Deputy Prime Minister Alexander Novak expects oil prices’ fluctuations will subside following volatility spurred by the tensions in the Middle East as geopolitical risks are already factored in, he told Al Arabiya News.

– Mexico’s Pemex this month shipped its first fuel export cargo from its new Olmeca refinery to India, a sign of progress after multiple delays and spiraling costs, according to shipping data and industry sources.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shreya Biswas)