Asia’s diesel market pared back from its recent rally on Wednesday, with margins and timespreads selling off amid profit taking.

The crack for benchmark 10ppm sulphur gasoil eased to a premium below $26 a barrel, after hitting its highest in 20 months, data compiled by LSEG showed.

Meanwhile, prompt intermonth spread for gasoil also contracted sharply day-on-day, though still holding in a strong backwardation.
Singapore-based traders continued to bid for gasoil at strong cash differentials on Wednesday.

Overall sentiment is still supported as the global supply balance remained tight.

A recent partial shutdown at Kuwait’s al-Zour refinery added to concerns of tightening production in the region.

Jet fuel timespreads also sold off on Wednesday, with prompt intermonth timespread widening back to below $2 per metric ton.

Regrade held stable at a discount of 70 cents per barrel. The spread is likely to remain in discounted territory amid gasoil strength.

SINGAPORE CASH DEALS

– Two gasoil deals, no jet fuel deal.

INVENTORIES

– U.S. distillate inventories fell by 4.36 million barrels for the week ended October 24, an extended Reuters poll showed on Tuesday.
– Fujairah middle distillates stocks fell 8.4% to 3.31 million barrels for the week ended October 27, according to industry information service S&P Global Commodity Insights.

REFINERY NEWS

– State-owned Kuwait Integrated Petroleum Industries Company on October 21 shut down parts of its 615,000 barrel-per-day Al-Zour refinery, industry monitor IIR said.

OTHER NEWS

– Oil prices steadied on Wednesday as investors weighed optimism over a meeting between the leaders of top consumers the U.S. and China against an expected increase in production quotas from the next OPEC+ meeting.
– Slovak refiner Slovnaft said on Tuesday that Croatian pipeline operator JANAF had reduced deliveries of non-Russian crude to it for technical reasons, hitting its efforts to refine fuel from other sources.
– India’s state-run refiner Mangalore Refinery and Petrochemicals Ltd has no immediate plans to buy Russian oil due to risks involved after the latest U.S. sanctions on Moscow’s top oil producers, a company executive told reporters.
– Big Oil may see marginally higher oil prices and stronger refining results boost third-quarter results after declining earnings over the past year, but some analysts are more interested in how global oil majors set the stage for 2026 when they begin reporting results this week.
Source: Reuters