Asia’s middle distillates markets recorded a slight revival in spot activity on the trading window, though prices remained rangebound overall and some May refiner sales were ongoing.

Meanwhile, traders were waiting to see if China-origin exports will decline for May month-on-month given the narrower margins for sales outside China in the past two weeks, hovering in negative territory.

The 10ppm sulphur gasoil refining margins barely moved and hovered at around $13.70 a barrel at the market’s close.

Talks of slightly better demand on higher-sulphur diesel were prevalent, with some sources attributing it to a rise in marine gasoil requirements regionally and overall limited spot availability.

Cash differentials remained supported at discounts of around 58 cents per barrel, with some buyers on the window.

Regrade was likewise little changed at discounts of around $1 a barrel.

SINGAPORE CASH DEALS

– No gasoil deal, one jet fuel deal

INVENTORIES

– U.S. crude oil and gasoline stockpiles were expected to have fallen last week, while distillate inventories likely rose, a preliminary Reuters poll showed on Monday.

NEWS

– South Korea will implement smaller tax cuts on oil products from May, the finance ministry said on Tuesday. Tax breaks will be extended until the end of June, with the rate adjusted to 10% for gasoline, from the current 15%, and that for diesel and liquefied petroleum gas butane adjusted to 15% from 23%.

– Increasing purchases of U.S. natural gas and oil is a focus of Taiwan’s tariff talks with the United States, President Lai Ching-te said on Tuesday.

– The share of OPEC oil in India’s imports fell to a record low in fiscal year 2024-25 as refiners continued to gorge on cheaper oil from Russia, the top oil supplier to New Delhi for the third straight year, data obtained from trade and industry sources showed.
Source: Reuters