Asia’s diesel spot activity stayed tepid, with a lack of deals on the trading window, though cash differentials continued their downward trajectory to seven-month lows.

Traders are waiting for a clearer market direction once China’s export quotas surface, in addition to more offers from China’s major exporters.

The January-February paper market structure barely moved, remaining at a backwardation of slightly more than 30 cents per barrel.

Refining margins (GO10SGCKMc1) were largely unchanged, hovering slightly above $18 a barrel.

Lower-priced offers continued to pressurise the 10ppm sulphur gasoil cash differentials (GO10-SIN-DIF) to close at premiums of 23 cents a barrel – a seven-month low level.

For jet fuel, the arbitrage between Asia and the U.S. west coast remained wide, though some traders were still waiting to see if this trend is sustainable enough to send exports over.

Regrade (JETREG10SGMc1) held firm at premiums of around 50 cents a barrel.

SINGAPORE CASH DEALS

– No deal for jet fuel or gasoil.

INVENTORIES

– U.S. crude and fuel inventories rose last week, market sources said, citing American Petroleum Institute figures on Tuesday.

NEWS

– Discounts for Russian ESPO Blend crude loading in January have widened to a record $7 to $8 per barrel versus ICE Brent upon delivery in Chinese ports, three traders said on Tuesday, as Western sanctions pressure weighs on the grade.

– Bahrain’s sole oil refiner BAPCO Energies has shipped out its first diesel cargo to Australia in nearly 2-1/2 years, data from shiptrackers and three trade sources showed, as it ramps up production and exports amid a capacity expansion.

– The U.S. Coast Guard is waiting for additional forces to arrive before potentially attempting to board and seize a Venezuela-linked oil tanker it has been pursuing since Sunday, a U.S. official and a source familiar with the matter told Reuters.

– Venezuela’s state-run oil company PDVSA has started filling tankers with crude and fuel oil and keeping them in Venezuelan waters, as inventories have mounted due to the U.S. seizing Venezuela-linked ships at sea, according to company documents and shipping data.
Source: Reuters