Asia’s diesel markets softened as assessment months rolled forward, with a portion of spot November sales still in the process.

The diesel east-west price spreads widened marginally to discounts of slightly more than $30 per metric ton, though swing sellers could still find it more profitable to pivot cargoes east.

Refining margins eased further to around $20.4 a barrel.

The 10ppm sulphur gasoil cash premiums, however, were supported as higher priced bids were readily available on the trading window. Deals however were scant.

Jet fuel markets remained firm, as evidenced from wider timespreads and rising cash premiums from the previous trading session.

With the Asia-US West Coast price difference remaining wide, talks of more arbitrage cargoes heading there resurfaced, especially from northeast Asia.

Regrade maintained at premium levels of around 20-30 cents per barrel, reflecting the jet fuel market strength compared with gasoil.

SINGAPORE CASH DEALS

– One jet fuel deal, no gasoil deal

INVENTORIES

– U.S. crude and gasoline stocks rose while distillate inventories fell last week, market sources said, citing American Petroleum Institute figures on Wednesday.

– Singapore’s middle distillates inventories slipped for the first week in three as net exports of diesel and jet fuel both gained from a week earlier, official government data showed on Thursday.

NEWS

– Some Indian refiners are preparing to cut Russian oil imports, with expectations of a gradual reduction, three sources familiar with the matter told Reuters, with the U.S. pressuring New Delhi to stop buying Russian crude to help end the war in Ukraine.

– Britain targeted Russia’s two largest oil companies, Lukoil and Rosneft, and 44 shadow fleet tankers on Wednesday in what it described as a new bid to tighten energy sanctions and choke off Kremlin revenues.

– Russia’s Rosneft Ufaneftekhim oil refinery halted crude processing at least at one of its four crude distillation units (CDUs) after a fire broke out following a drone attack on October 15, two sources familiar with the matter told Reuters.

– Russia’s Black Sea port of Novorossiisk has reached its maximum capacity to export, leaving traders struggling to reroute the crude oil it cannot refine domestically and that increased OPEC+ quotas allow it to produce, three market sources said.
Source: Reuters