Asia’s middle distillates markets kickstarted Monday with thin spot liquidity, against a backdrop of softening ICE gasoil futures and firm regional paper market structure, while traders eyed August China export barrels.

Regional prices are still trading in a mildly narrow range given the lack of fundamental changes or clearer direction for now, two trade sources said, though the August-September price structure remains in a firm backwardation.

Traders were also awaiting China export numbers for August, with some sources pegging the range at 600,000 to 800,000 metric tons for diesel and more than 2.4 million tons for jet fuel as of now.

Export margins for China’s oil majors have been healthier in the past two weeks after the jump in prices in dollar markets, multiple trade sources said.

The 10ppm sulphur gasoil refining margins gained back to around $21.5 a barrel, rebounding from the previous session’s close.

Meanwhile, cash differentials for 10ppm sulphur gasoil moved in line with the steeper paper market backwardation, as spot discussions on the window remained curtailed.

Regrade went back into wider discounts of nearly $3 a barrel.

SINGAPORE CASH DEALS

– No deals for both fuels

NEWS

– An OPEC+ panel is unlikely to alter existing plans to raise oil output when it meets on Monday, four OPEC+ delegates said, noting the producer group is keen to recover market share while summer demand is helping to absorb the extra barrels.

– Venezuela’s state-run oil company PDVSA is getting ready to resume work at its joint ventures under terms similar to Biden-era licenses, once U.S. President Donald Trump reinstates authorizations for its partners to operate and export oil under swaps, company sources said.

– Oil prices rose on Monday after the United States clinched a trade deal with the European Union and may extend a tariff pause with China, relieving concerns that higher levies could have hurt economic activity and limited fuel demand.
Source: Reuters