Asia’s middle distillates markets were little changed as August discussions came into full swing, with a handful of refiners issuing their sale tenders.

South Korean majors GS Caltex and SK Energy were both out seeking buyers for their first-half August gasoil shipments.

Some talks of slightly more China-origin cargoes to be shipped out for July weighed on overall discussion levels, though exact details could not yet be confirmed.

Refining margins hit nearly $16 a barrel, hovering at a three-week low level from the previous session.

Cash differentials fell 3 cents a barrel, despite the market being barren of deals, as lower-priced sellers remained prevalent in the spot market.

On the jet fuel front, spot discussions were also at a faster pace with South Korea’s SK Energy re-offering their earlier cancelled spot cargo for early August shipment.

Regrade went back up to discounts of around $1 a barrel, reflecting the slight weakness in spot jet fuel markets given that discussions were still in the discount territory.

SINGAPORE CASH DEALS

– No deals for both fuels

INVENTORIES

– Singapore’s middle distillates inventories were little changed from a week earlier, gaining by only 67,000 barrels, as a rise in diesel/gasoil net exports was offset by a decline in jet fuel/kerosene net exports, official data showed on Thursday.

– U.S. crude and gasoline stocks fell more than expected last week as refineries ramped up activity, while distillate stocks rose, the Energy Information Administration (EIA) said on Wednesday.

NEWS

– India’s state refiners are jointly negotiating a long-term oil import deal with Russia, a government source aware of the development said on Thursday.
– Freight rates to ship Russian oil have fallen this month towards parity with those for other global exporters for the first time since 2022 as more tankers were available despite Western sanctions and exports fell, three sources said on Wednesday.

– Global oil demand growth will slow to just under a million barrels per day (bpd) this year and next, the International Energy Agency (IEA) said, as Chinese consumption contracted in the second quarter amid economic woes.

– About 1.5 million customers remained without power in Texas on Wednesday, two days after Hurricane Beryl raked the state, as progress to restore electricity was slow, hampering efforts to quickly restart critical oil infrastructure.

– Indian private refiner Nayara Energy has issued a rare tender offering vacuum gasoil (VGO) for loading in September, market sources said on Thursday.
Source: Reuters (Reporting by Trixie Yap; Editing by Shreya Biswas)