Asia’s diesel markets firmed, with timespreads rebounding on Friday amid worries of slightly lowered regional supplies next month, while jet fuel cash differentials surged to a one-year high.

Chatter around limited China-origin exports for November came into focus late this week, buoying markets, following expectations of some refining run adjustments and changes in China after U.S. sanctions on the Rizhao Shihua terminal last week.

At least two of China’s oil majors are unlikely to export November diesel cargoes, two trade sources said, though it remains to be seen how much November exports would total.
Refining margins (GO10SGCKMc1) fell again from the previous trading session, closing at around $20.2 a barrel.

Cash differentials (GO10-SIN-DIF) rose to $1.79 a barrel, back to one-week high levels, as buying interest on window firmed amid limited lower-priced offers.

Jet fuel markets gained further, with cash differentials hitting a one-year high milestone (JET-SIN-DIF) amid robust supply-demand fundamentals.

Buying interest from Indonesia and Taiwan were supportive of November demand, ahead of the expected winter heating demand in some parts of northeast Asia for kerosene.

For the week, regrade (JETREG10SGMc1) turned to premiums for the first time since December last year mid this week, gaining further to 50-60 cents premiums a barrel on Friday.

SINGAPORE CASH DEALS

– No deals for jet, gasoil.

INVENTORIES

– Gasoil stocks independently held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub were little changed at 2.26 million tons as a rise in imports from the Middle East was tempered by higher demand from inland locations, data from Dutch consultancy Insights Global showed on Thursday.
– U.S. crude stocks rose more than expected last week as refining crude runs dropped sharply to their lowest in more than a year and a half, data from the Energy Information Administration showed on Thursday.

REFINERY NEWS

– Nigeria’s Dangote oil refinery has begun the restart process for its gasoline unit and is expected to resume production by Sunday, according to industry monitor IIR.

NEWS

– Western powers have ramped up pressure on Russia’s oil sales amid its war with Ukraine as U.S. President Donald Trump said India would stop buying and Britain imposed sanctions on top Russian oil firms.
– Oil deliveries are being disrupted by congestion at the Belgian Port of Antwerp-Bruges after a harbour pilots’ strike, analysts said, with the port authority counting up to 188 vessels still waiting to berth or depart.
– Oil prices edged lower in early trade on Friday, heading for a weekly loss, with uncertainty over global energy supplies after U.S. President Donald Trump and Russian President Vladimir Putin agreed to meet in Hungary to discuss ending the war in Ukraine.
Source: Reuters