Asia’s middle distillates markets saw some upbeat market activity on the jet fuel front, though gasoil discussions remained muted and under pressure.
Some traders were also looking at export volumes from China for the fourth quarter and waiting on quotas.
Refining margins GO10SGCKMc1 for the fuel dipped slightly back to around $13.25 a barrel, reflecting the continuous weakness and thin liquidity in the paper markets.
Cash differentials GO10-SIN-DIF for the end-September and early October spot markets climbed slightly to a discount of 59 cents a barrel, as some buying interest resurfaced.
Jet fuel’s trading window saw a flurry of spot activity as a key major regional trader continued its purchases for prompt deliveries of the aviation fuel.
UIT bought up to 629,000 barrels of jet fuel for delivery in end-September to early October so far, Reuters records showed.
Meanwhile, off window, October offers started emerging from northeast Asia after traders had waited with bated breath earlier, with discussions underway.
Regrade JETREG10SGMc1 held its ground at a discount of around 10 cents a barrel, reflecting the continued strength in jet fuel markets.
SINGAPORE CASH DEALS O/AS
– No deals for both fuels
INVENTORIES
– U.S. crude oil and distillate stockpiles were expected to have risen last week, while gasoline inventories likely fell, a preliminary Reuters poll showed on Monday. EIA/S
NEWS
– Oil products demand in China, long the driver of global crude consumption, peaked in 2023 and is forecast to decrease by 1.1% annually between 2023 and 2025, with the drop accelerating in subsequent years, a China oil researcher said on Tuesday.
– China’s daily crude oil imports rose last month to their highest in a year, customs data and Reuters records showed on Tuesday, as shipments staged a tentative recovery on lower crude oil prices and improving refining margins.
– Oil prices edged down on Tuesday as weak Chinese demand offset U.S. supply disruptions from Tropical Storm Francine and as global oil oversupply risks continued to weigh on the market.
– European Union legislation imposing methane emissions limits on Europe’s oil and gas imports from 2030 will present monitoring challenges, an executive at Norwegian oil company Equinor said at the APPEC event on Tuesday.
Source: Reuters (Reporting by Trixie Yap; Editing by Mrigank Dhaniwala)