Asia’s middle distillates markets were stable to weaker on Monday, with spot gasoil benchmarks retreating slightly while jet fuel held largely unchanged.

The 10ppm sulphur gasoil spot differential was pegged at a narrower premium, while market backwardation narrowed at the prompt months.

Gasoil refining cracks held steady from the previous trading day, remaining above $14 a barrel as prospects of lower Chinese exports kept the market supported.

Meanwhile, jet fuel market was largely stable, with the spot differential holding steadily in discounts. Selling interest persisted but met with muted demand.

Amid the weaker gasoil performance, the regrade spread closed at a premium of 12 cents a barrel.

SINGAPORE CASH DEALS

– One deal for gasoil, no deal for jet fuel

REFINERY

– Iraq’s Kerbala refinery is under extensive maintenance and has been non-operational since Sept. 25, a source with direct knowledge of the matter told Reuters.

NEWS

– Top oil exporter Saudi Arabia has raised the November price for its flagship Arab light crude to Asia to its highest levels since July.

– Shell’s refining profit margins dropped sharply in the third quarter from the previous three months as global demand sagged, while oil product trading earnings also weakened, it said on Monday.

– BP has abandoned a target to cut oil and gas output by 2030 as CEO Murray Auchincloss scales back the firm’s energy transition strategy to regain investor confidence, three sources with knowledge of the matter said.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shilpi Majumdar)