Asia’s middle distillate markets diverged on Tuesday, with the gasoil market softening and jet fuel strengthening.

Cash premium for 10ppm sulphur gasoil dropped further, with the product trading softer day-on-day, while refining margins inched lower to premiums of $15.15 a barrel.

India’s MRPL is selling more gasoil/diesel for loading in December. The cargo of 45,000 to 60,000 metric tons is expected to load between Dec. 22 and 23.

Additionally, the refiner offered 40,000 tons of jet fuel/kerosene for loading between Dec. 19 and 21. Both tenders close on Tuesday.

Meanwhile, Asia’s jet fuel market strengthened amid a higher-priced trade, with cash premium climbing to a three-week high.

SINGAPORE CASH DEALS

– One gasoil deal, one jet fuel deal.

REFINERY NEWS

– Russia plans to take 1.1 million metric tons of refining capacity offline in December, up more than 60% from a previous estimate but still less than half the 2.4 million tons in November, according to Reuters calculations based on data from industry sources.

– Iraq on Saturday halted all operations at the Shuaiba refinery in Basra following the overloading of fuel oil storage tanks, according to three refinery officials.

NEWS

– OPEC+ is likely to extend its latest round of oil output cuts at its meeting on Thursday until the end of the first quarter, four OPEC+ sources told Reuters, to provide additional support for the oil market.

– Spot premiums for Russia’s Far East ESPO Blend crude oil shipments to China rose to their highest since the Ukraine war broke out in 2022 on robust winter demand and as prices for rival grades from Iran firmed, three trade sources said on Tuesday.

– India has scrapped a windfall tax on crude products, aviation turbine fuel, and petrol and diesel exports, a government order said.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shinjini Ganguli)