Asia’s diesel market was broadly steady on Monday, as trading momentum held largely thin ahead of February cargo activity.

Refining margin for 10ppm sulphur gasoil (GO10SGCKMc1) hovered near $19 a barrel on Monday, rangebound from the previous week.

Market backwardation for gasoil was also broadly unchanged, though jet fuel timespread widened sharply amid volatile paper movements despite little changes in fundamentals.

The market continued to monitor the arbitrage window between the Asia and the U.S. West Coast.

In the meantime, regrade spread (JETREG10SGMc1) narrowed further to a premium of 27 cents per barrel.

SINGAPORE CASH DEALS

– No jet fuel deal, one gasoil deal.

NEWS

– Oil prices drifted lower on Monday, as adequate global supplies offset concerns about supply disruptions after the United States captured Venezuelan President Nicolas Maduro in an audacious raid over the weekend.
– Venezuela’s state-run oil company PDVSA has begun cutting crude production because it is running out of storage capacity due to an ongoing U.S. oil blockade.
– OPEC+ will likely maintain steady oil output at its meeting on Sunday, three OPEC+ delegates said on Friday, despite political tensions running high between key members Saudi Arabia and the UAE over Yemen.
– India is asking refiners for weekly disclosures of Russian and U.S. oil purchases, people familiar with the matter told Reuters, adding that they expect Russian crude imports to dip below 1 million barrels per day as New Delhi seeks to clinch a trade deal with Washington.
Source: Reuters