Asia’s middle distillates markets recorded more discussions for January-loading spot cargoes as some refiners kicked off their sale tenders, in line with earlier expectations, as a portion of them have cleared their term negotiations for next year.

Separately, spot discounts GO10-SIN-DIF narrowed for the second straight session this week, reflecting an improvement in the market’s swap structure between December and January. A continuous lack of sellers also supported market levels.

Support came further from an even wider east-west arbitrage, with the exchange of futures for swaps widening to almost $55 per metric ton at the close of the trading session.

Jet fuel refining margins JETSGCKMc1 climbed 3% from the previous session on talks of better demand expectations extending into January and February next year ahead of some travel activity before the Lunar New Year holiday.

Regrade JETREG10SGMc1 strengthened for the third straight session to flat, reflecting the strong performance in jet fuel swap prices in comparison with gasoil.

Some talks of airlines entering the swaps market also supported discussion levels, two sources said, though exact details could not be confirmed.

SINGAPORE CASH DEALS O/AS

– No deals for both fuels.

INVENTORIES

– Analysts in a Reuters poll estimated stockpiles of gasoline USOILG=ECI were up by about 1.2 million barrels last week, and distillate stockpiles USOILD=ECI, which include diesel and heating oil, were seen increasing by about 1 million barrels.

NEWS

– Oil prices held steady on Tuesday amid uncertainty over voluntary output cuts by the OPEC+ group of producers, tensions in the Middle East and weak economic data from the U.S.
– China’s services activity expanded at a quicker pace in November, a private sector survey showed on Tuesday, as the upturn in new businesses were the best seen for three months amid reports of firmer market conditions.
Source: Reuters (Reporting by Trixie Yap; Editing by Sonia Cheema)