Asia’s middle distillates markets were little changed on Wednesday as August cargoes were still readily offered from refiners, especially for jet fuel.

Meanwhile, open trading window went back to being barren of deals, reflecting the ongoing buy-sell gap for mostly August cargoes. Aggressive sellers were less active, exacerbating the lull in activity.

Some support in the later afternoon came from news of Russia considering a ban on diesel exports again, which could limit spot availability in the market.

Refining margins climbed for a second straight session, supported by gains in both ICE gasoil futures and paper market activity.

Cash differentials were stagnant at a discount of nearly 30 cents a barrel, reflecting the unchanged contango structure in the paper market and the buy-sell gap.
On the jet fuel front, more sellers for August cargoes emerged, with discussions remaining at discounts of slightly more than $1 a barrel.

South Korea’s S-Oil is also in the market to sell two spot cargoes for August, likewise for July shipment.

Regrade JETREG10SGMc1 closed the trading session at a discount of $1 a barrel, little changed from the previous trading session.

SINGAPORE CASH DEALS O/AS
– No deals for both fuels

INVENTORIES

– U.S. crude oil, gasoline and distillate inventories fell last week, according to market sources citing American Petroleum Institute figures on Tuesday. API/S
– Middle distillates stocks at Fujairah Oil Industry Zone fell to a three-week low of 2.711 million barrels for the week ended July 22, according to industry information service S&P Global Commodity Insights.

NEWS

– Indonesia is planning for the widespread use of the palm-oil based B40 biodiesel in 2025, replacing the current B35 blending, the energy ministry said in a statement.
– India’s Reliance Industries RELI.NS has received approval from the United States to resume importing oil from Venezuela despite Washington’s sanctions, a source familiar with the matter said on Wednesday.
– Ship owner Hafnia, operator of the Hafnia Nile oil tanker, is in discussion with Singapore’s Maritime and Port Authority (MPA) about transferring the damaged ship’s cargo of naphtha to a safe location, the MPA said on Wednesday.
Source: Reuters (Reporting by Trixie Yap; Editing by Mrigank Dhaniwala)