Asia’s diesel spot activity on window remained tepid on Friday, with cash differentials steadying at seven-month lows and market structures holding at slight backwardation.

Traders were eyeing more offers to surface from China after the country’s export quotas were released in the past two trading sessions.

Jet fuel offers did surface in line with earlier expectations from one China oil major.

For January so far, export volumes for diesel and jet fuel were expected at 300,000-400,000 metric tons and 2.3-2.4 million tons respectively. Markets were slightly concerned about the negative impact on jet fuel markets given that China barrels will resume high outflows next month.

Refining margins (GO10SGCKMc1) closed the trading session at around $18.9 a barrel, easing from last week, though values were in tight range for most of this week.

Cash differentials (GO10-SIN-DIF) were rolled over, remaining at slightly more than seven-month lows of 23 cents a barrel.

Asia’s jet fuel arbitrage spread with the U.S. west coast was still widely open, though discussions have yet to pick up for now.

Regrade (JETREG10SGMc1) values held firm at premiums of 50-60 cents a barrel.

SINGAPORE CASH DEALS

– No gasoil or jet fuel trades

REFINERY NEWS

– Japan’s biggest refiner, Eneos Corp, said on Thursday that it plans to shut the 128,000 barrels-per-day crude distillation unit (CDU) at its Marifu refinery in western Japan from mid-January to early April for scheduled maintenance.

INVENTORIES

– Singapore’s distillate stockpiles fell to one-month lows, tracking gains in diesel net exports week on week, despite a decline in jet fuel net exports, official government data showed on Friday.

NEWS

– China has issued 19 million tons of export quotas for refined fuels including gasoline, diesel and jet fuel in the first batch of such allowances for 2026, three trade sources familiar with the matter said late on Wednesday.

– The White House has ordered U.S. military forces to focus almost exclusively on enforcing a “quarantine” of Venezuelan oil for at least the next two months, a U.S. official told Reuters, indicating Washington is currently more interested in using economic rather than military means to pressure Caracas.

– India’s Reliance Industries Ltd continues to receive oil cargoes supplied by Rosneft after obtaining a one-month concession from Washington, which had imposed sanctions on the Russian producer, two sources familiar with the matter said.
Source: Reuters