Asia’s diesel front-month timespreads went back on a downward trajectory, nearing mid-month assessment month rollover, against a backdrop of rising supply expectations as January discussions went on.

January northeast Asia refiner sales were still done at discounts linked to FOB Singapore quotes, amid rising supply expectations as most refining units were back in high production levels after maintenance.

Refining margins declined for a third straight session to around $20.7 a barrel.

On the trading window, activity stayed muted – evidenced from the lack of spot deals while cash differentials (GO10-SIN-DIF) slipped slightly to below 60 cents per barrel.

Jet fuel spot markets stayed upbeat, given the recent surge in kerosene demand, owing to the colder winter season, with refiner deals mostly done at premiums so far.

Regrade barely moved, remaining at premiums of 20-30 cents per barrel.

SINGAPORE CASH DEALS

– One jet fuel deal, no gasoil deal

INVENTORIES

– U.S. crude inventories fell, while gasoline and distillates stockpiles rose last week amid strong refining activity, the Energy Information Administration said on Wednesday.

– Singapore’s distillate stocks slipped nearly 8% week on week amid rising jet fuel net exports and higher diesel/gasoil net imports, official government data showed on Thursday.

NEWS

– Oil prices eased on Thursday as investors shifted their focus back to Russia-Ukraine peace talks, while watching for any fallout from a U.S. seizure of a sanctioned tanker off the coast of Venezuela.

– Kazakhstan said on Thursday that it was adjusting down 2026 oil production plans due to expected maintenance at major oilfields and amid major damage from a Ukrainian drone attack on the Black Sea terminal used by the Caspian Pipeline Consortium (CPC).

– The U.S. has seized a sanctioned oil tanker off the coast of Venezuela, President Donald Trump said on Wednesday, a move that sent oil prices higher and sharply escalated tensions between Washington and Caracas.
Source: Reuters