Asia’s middle distillates markets remained thinly discussed on the trading window, as the swap backwardation structure eased further, with traders eyeing the start of September refiner spot sales soon.

Physical spot deals on window were non-existent for the third trading session this week, though the August-September timespreads did ease slightly from yesterday.

On the refiner sales front, some China-origin jet fuel cargoes were sold at discounts of slightly more than $1 a barrel for August loading.

Meanwhile, the diesel east-west spreads continued to narrow, hitting its smallest discount in around two months as declines in front month ICE gasoil futures remained prominent.

The 10ppm sulphur gasoil refining margins slipped further, hitting a one-month low of $18.8 a barrel.

Meanwhile, cash differentials fell to $1.57 a barrel, reflecting the softening backwardated price structure for swaps market as deals remained scant.

Regrade for August barely moved, holding at discounts of around $2.60 a barrel.

SINGAPORE CASH DEALS

– No deals for both fuels

INVENTORIES

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

NEWS

– About a half dozen foreign partners of Venezuela’s state-owned oil company PDVSA are awaiting authorizations from the U.S. Treasury and State departments, following talks last week about fresh licenses to allow them to operate in the sanctioned South American country, according to six company sources.

– China’s Shandong Yulong Petrochemical has bought its first Canadian crude oil cargoes exported via the Trans Mountain pipeline for September and October delivery, trade sources said, as the new refiner diversifies its supplies.

– U.S. Treasury Secretary Scott Bessent on Tuesday said he warned Chinese officials that continued purchases of sanctioned Russian oil would lead to big tariffs due to legislation in Congress, but was told that Beijing would protect its energy sovereignty.

– Three vessels laden with oil products from India’s Nayara Energy have yet to discharge their cargoes, hindered by new EU sanctions on the Russia-backed refiner, according to shipping data and sources.
Source: Reuters