Asia’s middle distillates markets were volatile on Wednesday, with prices and the paper market structure weakening and some August spot negotiations still ongoing.

ICE gasoil futures continued its downward trajectory for a second straight session amid cautious trading sentiment.

The east-west price spreads narrowed again, after widening in the previous session. Majority of July-loading diesel is still likely bound for west of Suez markets, LSEG shiptracking data showed.

The 10ppm sulphur gasoil refining margins slipped back down to around $21 a barrel, erasing some of past session’s gains.

On the trading window, activity remained muted and the 10ppm sulphur gasoil cash differentials dipped back down to $1.63 a barrel in line with the narrower August/September timespread.

For jet fuel, some August spot sales by northeast Asian refiners remained done in slightly discounted territory in line with earlier market expectations.

The arbitrage window for east-west jet fuel flows was still mildly profitable, some trade sources say.

Regrade narrowed by 30 cents from the previous trading session, closing at discounts of around $2.3 a barrel reflecting the weaker gasoil paper markets in comparison to jet fuel.

SINGAPORE CASH DEALS

– No deals for both fuels

INVENTORIES

– U.S. crude and gasoline stocks fell last week while distillate inventories rose, market sources said, citing American Petroleum Institute figures on Tuesday.

– Middle distillates stockpiles held at Fujairah Oil Industry Zone declined to one-month lows of 2.2 million barrels in the week ended July 21, according to industry information service S&P Global Commodity Insights.

REFINERY NEWS

– Marathon restarted a diesel-producing unit and the gasoline-producing unit at its 631,000 barrel-per-day (bpd) Galveston Bay Refinery in Texas City, Texas, people familiar with plant operations said on Tuesday.

– Nigeria’s Dangote oil refinery is expected to carry out a 40-day planned maintenance at its gasoline-making unit in December, instead of in October as previously planned, industry monitor IIR said.

NEWS

– Azeri BTC crude oil loadings from the Turkish port of Ceyhan resumed on Wednesday, after increased checks linked to a contamination issue delayed loadings in recent days, several industry sources told Reuters.

– Russian state oil and gas revenue is set to fall in July by around 37% from the same month in 2024 to 680 billion roubles ($8.66 billion) due to cheaper oil and a stronger local currency, Reuters calculations show.

– Rain has raised water levels on the river Rhine in Germany, but most of the river is still too shallow for cargo vessels to sail fully loaded, commodity traders said on Wednesday.

– A tanker will not load fuel from India’s sanctions-hit Nayara Energy refinery as scheduled, according to three industry sources and LSEG shiptracking data, becoming the second such vessel to change plans following the European Union measures.
Source: Reuters