Asia’s middle distillates markets recorded a lack of spot liquidity on the trading window, while traders eyed China export volumes.

Talks of China’s product export quotas were in the market, but further details could not be confirmed and traders say volumes should still be within earlier expectations.

Refining margins regained some ground, rebounding to slightly above $19 a barrel, reversing previous session’s losses.

Cash differentials extended gains from last Thursday, hovering at still one-month high levels of nearly $1.1 a barrel as a reflection of the steeper market backwardation.

A key jet fuel buyer in northeast Asia sought for October arrival spot cargoes, though further details were not immediately known.

Regrade narrowed slightly to discounts of $1.6 a barrel.

SINGAPORE CASH DEALS

– No deals for gasoil or jet fuel

INVENTORIES

– U.S. crude oil and gasoline stockpiles were expected to have fallen last week, while distillate inventories likely rose, a preliminary Reuters poll showed on Monday.

NEWS

– Sanctioned tanker Spartan has discharged Russian crude oil at India’s Mundra port despite a ban by the Adani Group on entry of blacklisted ships at the terminal, ship tracking data from LSEG and Kpler showed on Tuesday.

– The Baltic Sea port of Primorsk, a major outlet for Russian oil exports, partially resumed operations on Saturday following disruptions and damage caused by Ukrainian drone strikes, two sources familiar with the matter said.

– One of Russia’s largest oil refineries, in the northwestern town of Kirishi, has halted a key processing unit following a Ukrainian drone attack over the weekend, two industry sources said on Monday.
– Discounts for Iranian oil in China have widened on record stock levels at a major refining hub and as a shortage of import quotas towards year-end hindered buying by independent processors, six trade sources told Reuters.
Source: Reuters