Asia’s middle distillates markets were thinly discussed and little changed for a second straight session as traders were mixed on fourth quarter outlooks despite talks of refining run cuts and support from gains in the futures markets.

A portion of the market still has expectations that prices were close to bottoming out in the near-term should refiners maintain lowered refining runs in the next few months, but demand remains a key concern.

Meanwhile, some South Korea-origin gasoil and jet fuel were both sold at discounts of around $1 a barrel for October loading via spot sale tenders.

Refining margins were little changed from the previous session, trading at around $11.80 a barrel given the slower reaction compared with crude futures gains.

Spot market discounts were little changed at discounts of more than 40 cents a barrel, as buyers and sellers both seemed disinterested in open window participation.

There were talks of some Japan refiners needing to come back into the market to continue their spot purchase for jet fuel, but further details could not be confirmed.

Regrade meanwhile did not find any support in recent market movements, closing the trading session at a discount of 44 cents a barrel.

SINGAPORE CASH DEALS

– No deals for both fuels.

INVENTORIES

– U.S. crude oil and distillate stockpiles were expected to have fallen last week, while gasoline inventories likely rose, a preliminary Reuters poll showed on Monday.

REFINERY NEWS

– Russian energy company Novatek launched the new processing unit at its gas condensate complex at the Baltic Sea port of Ust-Luga in the last third of the August, two market sources told Reuters.

– Russia’s Gazprom Neftekhim Salavat oil processing, petrochemical and fertiliser complex located in the Bashkortostan region announced major maintenance.

NEWS

– Oil prices rose on Tuesday on news of monetary stimulus from top importer China and concerns that conflict in the Middle East could hit regional supply while another hurricane threatened supply in the United States, the world’s biggest crude producer.

– U.S. oil producers were scrambling on Monday to evacuate staff from Gulf of Mexico oil production platforms as the second major hurricane in two weeks was predicted to tear through offshore oil producing fields.
Source: Reuters (Reporting by Trixie Yap; Editing by Shreya Biswas)