Asia’s refining margin for gasoil eased on Wednesday amid some sell-offs, while the market eyed more barrels flowing into the region.

The front-month crack for 10ppm sulphur gasoil fell back to levels below $16 a barrel on Wednesday, based on LSEG data at the Asia close (0830 GMT).

Supplies from India and the Middle East flowing to Asia have risen in recent weeks, capping the strength that came from expectations of limited China exports, trade sources said.

Meanwhile, spot premium for gasoil remained rangebound near 50 cents a barrel, with some bids retaining strength for the prompt loading laycan.

Regrade spread widened slightly day-on-day, closing at a premium of 54 cents a barrel on Wednesday.

SINGAPORE CASH DEALS

– No gasoil deal, no jet fuel deal.

INVENTORIES

– Middle distillates inventories held at Fujairah Oil Industry Zone rose 11.6% to 2.141 million barrels in the week ended Nov. 25, according to industry information service S&P Global Commodity Insights.

REFINERY NEWS

– Suncor Energy Inc on Tuesday said that all affected units at its 85,000-barrel-per-day refinery in Sarnia, Ontario, have resumed standard operations following an operational issue.

NEWS

– U.S. President-elect Donald Trump does not intend to spare crude oil from his planned 25% import tariffs on Canada and Mexico, sources told Reuters, as the oil industry warned the policy could hurt consumers, industry and national security.

– OPEC is unlikely to unwind voluntary production cuts in the short term, executives of global commodity trading giants Vitol, Trafigura and Gunvor said at the Energy Intelligence Forum in London.

– Crude oil and condensate production by Mexican state energy company Pemex declined in October year-on-year to the lowest level so far this year, official numbers showed, while its local refineries processed more of it.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Anil D’Silva)