Asia’s middle distillates markets were mixed as window spot activity stayed upbeat but paper markets were thin in comparison, with Trafigura buying a total of 850,000 barrels of end-July to early-August cargoes so far this week.

Traders were waiting for more offers from refiners for August to have a clearer supply outlook, given cautious expectations for demand.

Slowing demand remained a worry, especially as some refineries were likely to bring back their facilities after maintenance ends, two trade sources said.

Concerns that China-origin exports could gain in the next two months were also evident given they still have sufficient quotas available until September, one trader said.

Refining margins GO10SGCKMc1 clawed back some losses from a day earlier, recovering to slightly above $16 a barrel at the market’s close.

Spot market discounts GO10-SIN-DIF went back down to slightly more than 20 cents a barrel as lower-priced sellers were once again readily available.

Meanwhile, some traders are expecting China-origin jet fuel cargoes to remain readily available for August, though offers have yet to emerge so far.

Regrade remained under pressure as a result, keeping at discounts of almost $1.20 a barrel.

SINGAPORE CASH DEALS
– One 10ppm gasoil deal, no jet fuel deal

INVENTORIES
– U.S. crude oil stockpiles last week fell more than expected as strong refining activity continued despite Hurricane Beryl, while gasoline and distillate inventories rose, the Energy Information Administration said on Wednesday.

– Singapore’s middle distillates stockpiles rose more than 30% from last week, as a surge of jet fuel/kerosene total imports – mainly from India – offset gains in diesel/gasoil net exports, data showed on Thursday.

REFINERY NEWS
– Exxon Mobil’s XOM.N 251,800-barrel-per-day refinery in Joliet, Illinois, is likely to have most units offline through this week, industry monitor IIR said on Wednesday.

NEWS
– China’s diesel exports in June rose almost three-fold compared to a year earlier, data from the General Administration of Customs showed on Thursday, as domestic demand remained in the doldrums.

– Oil prices extended gains on Thursday, buoyed by a bigger than expected decline in crude stocks in the United States, the world’s largest oil consumer. O/R

– QatarEnergy has raised the September term price for al-Shaheen crude to $1.88 a barrel above Dubai quotes, trade sources said on Wednesday, the highest premium in three months.
Source: Reuters (Reporting by Trixie Yap; Editing by Krishna Chandra Eluri)