Asia’s middle distillates markets strengthened further on Tuesday as sentiment took a more upbeat turn recently amid lower supply expectations for October.

The 10ppm sulphur gasoil spot differential was pegged at a wider premium, after flipping from a discount to premium on Monday.

Gasoil refining margins closed the trading session higher at $13.37 a barrel, while market backwardation also widened.

Jet fuel also gained strength on Tuesday, with its market structure flipping from contango to backwardation at the prompt months, based on LSEG data.

Regrade narrowed further to a discount of 18 cents a barrel, reflecting stronger gasoil performance.

SINGAPORE CASH DEALS

– One deal for gasoil, no deal for jet fuel

REFINERY NEWS

– Taiwan oil refiners are bracing for heavy rain and winds ahead of super Typhoon Krathon’s anticipated landfall, with the storm likely to delay some fuel shipments and prolong maintenances, while key ports are shut, industry sources said.

NEWS

– Analysts have cut their 2024 oil price forecasts for a fifth consecutive month, citing weaker demand and uncertainty over OPEC’s plans, with prices expected to remain under pressure despite geopolitical risks, a Reuters poll found.

– Exxon Mobil Corp’s deal to sell its Nigerian onshore assets to Seplat Energy will be approved in days after getting clearance from the regulator, President Bola Tinubu said on Tuesday.

– U.S. renewable diesel production capacity declined in July by the most since the industry began its rapid expansion three years ago, data from the Energy Information Administration showed on Monday.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shilpi Majumdar)