Asia’s middle distillates markets were mixed at the start of the week, with margins falling but cash differentials and regrade firming amid thin spot activity in the open trading market.

Spot market differentials for end-December to January loading parcels were slightly supported from the previous trading session as some buyers emerged.

The discount closed at 16 cents a barrel on Monday, compared to 22 cents on Friday, with a lack of sellers buoying the market.

More activity is likely to emerge as some refiners confirm contracts for next year and start to offer January-loading spot cargoes, one source said.

Refining margins for 10 ppm sulphur gasoil and jet fuel kicked off the week weaker at sightly below $22 a barrel.

Regrade for January rose to a premium of 10 cents despite continued selling by a portion of the market amid limited demand-supply cues for the aviation fuel. Loadings for December from northeast Asia to northwest Europe have not emerged，shiptracking data from Kpler showed.

SINGAPORE CASH DEALS O/AS

– No deals for both fuels

NEWS

– China’s consumer prices fell the fastest in three years in November while factory-gate deflation deepened, indicating rising deflationary pressures as weak domestic demand casts doubt over the economic recovery.

– Saudi Aramco has notified at least three North Asian buyers that it will supply full contractual volumes of crude oil in January 2024, people with knowledge of the matter said on Monday.

– The U.S. Department of Energy on Friday said it wants to buy up to 3 million barrels of crude oil for the Strategic Petroleum Reserve (SPR) for delivery in March 2024, as it takes advantage of lower prices to start to replenish the stockpile.

– Chinese refiners’ demand for Saudi Aramco crude oil for January is the lowest in five months, people with knowledge of the matter said on Monday, as higher-than-expected prices prompted buyers to seek cheaper supply.
Source: Reuters (Reporting by Trixie Yap; Editing by Varun H K)