Asia’s diesel market structure eased further on Thursday, as trading liquidity remained stale on the window, while October spot sale activities were underway.
Spot offers surfaced from South Korea’s GS Caltex for October 10ppm and 50ppm sulphur gasoil cargoes as more refiners kickstart their regular sales.
Traders were still eyeing markets in the west as a form of support for Asia, with swing suppliers likely to still pivot their spot cargoes west this month, easing supply fundamentals in this region.
Refining margins (GO10SGCKMc1) clawed back some of previous losses to close at around $19.3 a barrel.
The 10ppm sulphur gasoil cash differentials (GO10-SIN-DIF) declined again to 84 cents per barrel, reflecting the weaker timespreads for September and October markets.
For jet fuel, buying activity for October from some regional importers is expected to start soon.
Meanwhile, some mini term agreements spanning cargoes loading from November to March next year were being discussed between South Korea’s major exporters and some Japanese refiners ahead of the winter heating season.
Discussion levels were at around $3 per barrel, but further details could not be confirmed though some traders say it could be cargo volumes ranging from 150,000 barrels to 300,000 barrels.
Regrade (JETREG10SGMc1) narrowed slightly to discounts of around $1.85 a barrel.
SINGAPORE CASH DEALS
– No deals for both fuels
INVENTORIES
– U.S. crude and fuel inventories rose last week amid a decline in exports and demand, the Energy Information Administration said on Wednesday.
– Singapore’s middle distillates stocks remained at the 9.8 million barrel level despite soaring jet fuel imports as diesel net exports rose, official data showed on Thursday.
NEWS
– The European Union is considering a faster phase-out of Russian fossil fuels as part of new sanctions against Moscow, European Commission chief Ursula von der Leyen said on Wednesday after U.S. pressure on Europe to stop buying Russian oil.
– World oil supply will rise more rapidly than expected this year as OPEC+ members increase output further and supply from outside the group grows, the International Energy Agency said on Thursday, and implied that a surplus could grow in 2026.
– Indonesian state energy firm PT Pertamina will merge the operations of its refinery, shipping and retail units to improve efficiency in its core business, CEO Simon Aloysius Mantiri said on Thursday.
– China’s independent teapot refiners are staring down a fresh hit to profits because of new rules introduced this month to crack down on untaxed refined oil, analysts say, as the sector struggles with tepid fuel demand and overcapacity.
Source: Reuters