Asia’s middle distillates markets snapped a four-session losing streak on Monday, against a backdrop of volatile crude oil futures and mixed forecasts of November spot supply in northeast Asia.

While some talks of lower China-origin exports of around 700,000 metric tons for November emerged since late last week, some South Korean refiners also emerged with more spot lots for sale.

Refining margins for 10 ppm sulphur gasoil were slightly above $26 a barrel, recouping most of last week’s losses.

Cash premiums for November spot lots, however, declined slightly as sellers were ready available for November parcels in the spot market.

Jet fuel refining margins climbed as well to above $23.50 a barrel, tracking gasoil gains – but overall weaker fundamentals widened regrade to almost a two-week high.

SINGAPORE CASH DEALS

– One gasoil deal and no jet fuel deal.

REFINERY NEWS REF/OUT

– Exxon Mobil XOM.N cut back production in the coker at its 619,024 barrel-per-day (bpd) Beaumont, Texas refinery because of a crane malfunction, people familiar with plant operations said on Friday.

NEWS

– Oil prices fell more than $1 on Monday as concerns about supply disruptions eased due to diplomatic efforts intensifying in an attempt to contain the conflict between Israel and the Palestinian Islamist group Hamas. O/R

– South Korea’s state-run Korea National Oil Corp (KNOC) said on Monday it has signed an oil storage agreement with Saudi Arabia’s oil giant Aramco to reserve 5.3 million barrels for five years.

– A lack of biofuels demand in Asia-Pacific is making it hard for companies to justify pumping billions of dollars into projects in the region, an ExxonMobil executive said on Monday, despite growing decarbonisation efforts worldwide.
Source: Reuters (Reporting by Trixie Yap; Editing by Varun H K)