Asia’s middle distillates markets continued to see October sales activity from refiners, particularly with some China oil majors starting their sales in line with earlier expectations.

Two or more regional refiners continued with their October spot sales of distillates, though discussion levels were seemingly at similar discounts as last week.

Talks of some refining run cuts starting soon in northeast Asia were prevalent, with some traders hoping that this would limit the overall regional supply glut in the short run. Further details however could not be confirmed.

Refining margins rose slightly to around $12 a barrel, reflecting the gains in paper swaps and ICE gasoil futures near the Asia market’s close.

Spot market discounts were little changed amid thin window trades and a persistent buy-sell gap.

Regrade narrowed further to discounts of 35 cents a barrel, reflecting the slightly stronger gasoil performance in comparison.

SINGAPORE CASH DEALS

– One jet fuel deal, no gasoil deal

NEWS

– India’s monthly oil imports from Russia fell by 18.3% to about 1.7 million barrels per day (bpd) in August from the previous month due to lower crude processing by some refiners, tanker data obtained from trade sources showed.

– Shell said on Sunday that it would shut production at its Stones and Appomattox facilities in the Gulf of Mexico as a precautionary measure in response to a tropical disturbance.

– China is planning a tax revamp that would raise costs for imported fuel oil, prompting independent refiners to slow purchases in another blow to a sector reeling from thin processing margins amid faltering demand, industry sources said.
Source: Reuters (Reporting by Trixie Yap)