Asia’s middle distillates markets kicked off the week with slightly thinner spot liquidity, with traders looking for clues on how August spot sales will pan out though positive expectations from the West remained.

There are bullish expectations in the near-term given the current ICE gasoil positioning numbers, some analysts say.

“Speculators have become more constructive on the market, and this is reflected in positioning. The ICE gasoil managed money net long increased by 19,456 lots over the last reporting week to 99,404 lots – the largest position since March 2022,” ING Bank said in a client note.

Refining margins GO10SGCKMc1 for the fuel closed the trading session at slightly above $17 a barrel, firming from the previous session given the rollover in months to August.

Cash differentials GO10-SIN-DIF slipped further by 6 cents into a deeper discount of 13 cents a barrel, as evidenced from the wider July-August contango.

Regrade JETREG10SGMc1 narrowed slightly to a discount of $1.30 a barrel, with expectations of more spot discussions to emerge this week.

SINGAPORE CASH DEALS O/AS

– No deals for both fuels

REFINERY NEWS REF/OUT

– A limited fire broke out in a storage area belonging to Kuwait’s al-Zour refinery, but production was not affected, state-owned Kuwait Integrated Petroleum Industries Company (KIPIC) said on Saturday.

NEWS

– Oil prices climbed on Monday, supported by forecasts of a supply deficit stemming from peak summer fuel consumption and OPEC+ cuts in the third quarter, although global economic headwinds and rising non-OPEC+ output capped gains.

– Asia’s factory activity expanded in June on solid momentum in the global economy and brightening prospects for semiconductor output, surveys showed on Monday, offering policymakers some hope the region can weather the hit from soft Chinese demand.
Source: Reuters (Reporting by Trixie Yap; Editing by Mrigank Dhaniwala)