Asia’s diesel markets continued to record tepid window trading activity, though downside pressures on cash differentials remained due to talk of swing barrels possibly heading east next month amid rising freight costs.

The backwardation in paper market structures eased further, as evidenced from the less bullish December trading sentiment.

Some December buying interest emerged, with Indonesia’s Pertamina seeking up to 1 million barrels of 2500ppm sulphur gasoil for December and 120,000 barrels of 50ppm gasoil.

However, the 10ppm sulphur gasoil refining margins (GO10SGCKMc1) declined further to around $23 a barrel.

Lower-priced offers on the trading window for both diesel and jet fuel were particularly prevalent as some traders were mulling sales of swing barrels to Asia for next month.

This comes against a backdrop of rising freight costs for shipments to the northwest Europe markets, following a switch in usage of clean product tankers to dirty tankers.

The 10ppm sulphur diesel cash differentials (GO10-SIN-DIF) extended declines to close at around $1.9 a barrel.

Regrade (JETREG10SGMc1) was little changed at discounts of 65 cents per barrel.

SINGAPORE CASH DEALS

– No gasoil or jet fuel deals

INVENTORIES

– U.S. crude oil and fuel stockpiles were expected to have risen last week, a preliminary Reuters poll showed on Monday.

REFINERY NEWS

– Russia’s Black Sea port of Tuapse resumed oil product exports last week after a two-week suspension following Ukrainian drone attacks, while the local oil refinery has restarted processing crude, according to two industry sources and LSEG data.

NEWS

– Moscow and Beijing have been discussing ways to expand Russian oil exports to China, Russian Deputy Prime Minister Alexander Novak said on Tuesday.

– Commodities trader BB Energy has laid off over a dozen people from its Houston office, and parted with some oil traders in a major restructuring of its operations, sources familiar with the matter said.

– Nigeria’s Dangote has tapped Honeywell to provide services and help double its refining capacity to 1.4 million barrels per day by 2028, in what is the clearest indication yet that its plans to become the world’s largest petroleum refinery are bearing fruit.

– BP’s Olympic Pipeline system remained shut on Monday as the company and authorities investigated a fuel leak near Everett, Washington, while airlines activated contingency plans to limit disruptions during the busy Thanksgiving travel week.

– Oil prices eased on Tuesday as concerns supply will exceed demand next year outweighed worries that Russian shipments will remain under sanctions as talks to end the Ukraine war remain inconclusive.
Source: Reuters