Asia’s spot middle distillate markets were little changed on Tuesday, though the regrade spread narrowed as the gasoil complex largely retained strength.
Cash premiums for 10ppm sulphur gasoil continued to hold near 50 cents a barrel, while backwardation for the Dec/Jan contract widened slightly from the previous session.
Margins for gasoil inched up to premiums above $16.70 a barrel, according to LSEG data at 0830 GMT.
Meanwhile, jet fuel continued to hold stable amid thin trading momentum.
Regrade spread narrowed to a premium of 50 cents a barrel on Tuesday, reflecting the relatively stronger performance of the gasoil market.
SINGAPORE CASH DEALS
– One gasoil deal, no jet fuel deal.
REFINERY NEWS
– The large crude distillation unit was back to normal operation on Monday at Valero Energy Corp’s VLO.N 360,000 barrel-per-day Port Arthur, Texas refinery after completing repairs, said people familiar with plant operations.
NEWS
– OPEC+ may consider leaving its current oil output cuts in place from Jan. 1 at its next meeting on Sunday, Azerbaijan’s Energy Minister Parviz Shahbazov told Reuters, as the group had already postponed hikes amid demand worries.
– Kazakhstan could sharply increase its crude oil exports out of Turkey’s port of Ceyhan, its energy minister said on Monday, in a move that would reduce the more than 80% share of flows it currently sends via Russia.
– Malaysia plans to start producing sustainable aviation fuel in 2027, with an initial production capacity of one million metric tons per year, Plantation and Commodities Minister Johari Abdul Ghani said on Tuesday.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Devika Syamnath)