Asia’s 10-ppm sulphur gasoil cracking margins GO10SGCKMc1 ended the trading week at its highest level near $26 a barrel on Friday, bolstered by a wider east-west arbitrage and rebound in ICE gasoil futures – though regional spot market activity remained muted.

Spot cash premiums GO10-SIN-DIF, however, slipped for the sixth consecutive week and closed at $1.40 a barrel, in line with the narrower November-December price structure.

The east-west arbitrage spread, measured by the exchange of futures for swaps (EFS) price differentials, widened for the third consecutive session to a discount of more than $60 a metric ton.

Markets were still pinning their hopes on demand from the West to support global demand-supply fundamentals.
There were talks of more contractual discussions happening in the market from Asian refiners but further details could not be confirmed.
Regrade JETREG10SGMc1 rose to almost a two-month high discount of around $1.55 a barrel, with jet fuel refining margins JETSGCKMc1 gaining at a quicker pace.

SINGAPORE CASH DEALS O/AS
– No deals for both fuels.

INVENTORIES
– Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by more than 1% to 1.77 million tons on higher volumes arriving from the Mideast Gulf and Asia, data from Dutch consultancy Insights Global showed. ARA/

NEWS
– Oil prices were little changed on Friday, but headed for a second week of losses as supply concerns driven by conflict in the Middle East eased, while the demand outlook from the world’s top crude importer China remained uncertain. O/R

– Seaborne diesel and gasoil exports from Russian ports fell 11% in October from a month earlier to about 2.55 million metric tons due to major maintenance work at refineries and a fuel export ban, data from traders and LSEG showed.
Source: Reuters (Reporting by Trixie Yap; Editing by Shweta Agarwal)