Asia’s middle distillates markets kickstarted the week with thin spot trading liquidity both on window, though cash premiums for both gasoil and jet fuel gained to reflect a deeper paper backwardation.

More sales are likely to emerge from northeast Asia this week, one source said, though refiner offers were scant for today.

Talks of refinery run cuts squeezing overall exports going into November were still evident, but further details could not be confirmed.

Refining margins GO10SGCKMc1 for 10ppm sulphur gasoil were little changed from the previous trading session at around $12.7 a barrel.

Cash differentials GO10-SIN-DIF closed the trading session also little changed, against a backdrop of thinning spot discussions on window.

Jet fuel spot premiums gained further to 36 cents a barrel, reflecting the steeper October-November paper market backwardation, with traders saying that some deals have been done at higher premiums for prompt early November cargoes.

Meanwhile, regrade JETREG10SGMc1 also jumped to a premium of around 65 cents a barrel.

SINGAPORE CASH DEALS O/AS

– No deals for both fuels

NEWS

– Saudi Aramco is “fairly bullish” on China’s oil demand especially in light of the government’s stimulus package which aims to boost growth, the head of the state-owned oil giant said on Monday.

– Major energy company Shell and Singapore’s Maritime and Port Authority deployed clean-up measures after a leak from a land-based pipeline, they said on Sunday.

– China’s oil demand growth is expected to remain weak in 2025 despite recent stimulus measures from Beijing as the world’s No. 2 economy electrifies its car fleet and grows at a slower pace, the head of the International Energy Agency said on Monday.

– Indonesia’s new government aims to revive oil and gas production, with plans to cut regulations, reactivate idle wells and enhance output at producing assets in hopes of reversing a decades-long decline in output, officials have said.
Source: Reuters (Reporting by Trixie Yap; Editing by Shreya Biswas)