Asia’s diesel market movements were mixed, with cash differentials extending gains despite softening margins amid thinning trade liquidity on window and a 2% decline on ICE gasoil futures.

Earlier bullish trading sentiment took a slight breather as some traders took profits and were waiting for a clearer forward market direction on the demand front.

The exchange of futures for swaps spread narrowed to its smallest discount since late August given the larger dip in ICE gasoil prices, LSEG pricing data showed.

On the spot selling front, some Chinese refiners continued to sell October jet fuel and diesel in line with their export plans.

Buying-wise, Vietnam’s Petrolimex sought for some mid-October 500ppm sulphur gasoil cargoes via a tender that closed last Friday and valid till tomorrow.

At the market’s close, the 10ppm sulphur gasoil refining margins (GO10SGCKMc1) fell almost 20 cents to $21.6 a barrel.

Cash differentials (GO10-SIN-DIF) climbed further to $1.2 a barrel, shrugging off the lack of trades on window, as buying interest stayed firm and October-November timespreads held its ground.

Regrade (JETREG10SGMc1) widened to discounts of $1.3 a barrel, reflecting some weakness in jet fuel paper markets while diesel held firm.

SINGAPORE CASH DEALS

– No deals for gasoil or diesel

REFINERY NEWS

– Brazil’s oil regulator ANP has provisionally shut down the private Refit refinery in Rio de Janeiro after identifying operational irregularities and suspected irregular fuel imports, the agency’s director general Artur Watt said on Friday.

NEWS

– Nigeria’s Dangote Petroleum Refinery has resumed selling petrol in naira, following a brief suspension due to crude supply constraints, according to a notice sent to customers and seen by Reuters late on Saturday.
– OPEC+ will likely approve another oil production increase of at least 137,000 barrels per day at its meeting next Sunday, as rising oil prices encourage the group to try to further regain market share, three sources familiar with the talks said.
– Nigeria’s Dangote oil refinery said on Friday it had laid off a small number of workers citing sabotage in various units, sparking criticism from an oil workers’ union which said over 800 Nigerian workers were fired.
– Russia is set to introduce a partial ban on diesel exports until the end of the year to tackle shortages following a spate of Ukrainian drone attacks on Russian refineries but traders said they expected the measure to have little impact on fuel flows.
– Oil prices dropped on Monday after Iraq’s Kurdistan region resumed crude oil exports via Turkey over the weekend, coupled with OPEC+ plans for another oil production hike in November, adding to global supplies.
Source: Reuters