Asia’s diesel crack rebounded on Wednesday after easing earlier this week, with supply fundamentals remaining tight.

The margin for benchmark 10ppm sulphur gasoil (GO10SGCKMc1) closed higher day-on-day at a premium above $25 a barrel, data compiled by LSEG showed.

The market stayed steeply backwardated for the front months, with November-December timespread widening back to near $2.90 per barrel, though the benchmark grade traded at a broadly stable differential from the previous day.

Meanwhile, spot differential for jet fuel was also pegged higher on Wednesday, though trading momentum remained thin on the window.

The regrade spread (JETREG10SGMc1) closed at a wider discount of 47 cents per barrel on Wednesday, amid the rebound in gasoil.

SINGAPORE CASH DEALS

– Two gasoil deals, no jet fuel deal.

INVENTORIES

– U.S. crude oil stockpiles were expected to have risen last week, while gasoline and distillate inventories likely fell, an extended Reuters poll on Tuesday showed. Analysts estimated distillate inventories, which include diesel and heating oil, decreased by about 2 million barrels last week.
– Fujairah middle distillates stocks dipped 2.4% to 3.23 million barrels for the week ended November 3, according to FOIZ data published by S&P Global Commodity Insights.

REFINERY NEWS

– Marathon Petroleum plans to operate its 13 refineries at 90% of their combined 3-million barrel-per-day capacity in the fourth quarter of 2025, said John Quaid, chief financial officer, during a Tuesday conference call.

OTHER NEWS

– Oil prices dipped on Wednesday amid a wider slump in financial markets and a strong U.S. dollar, while investors assessed the supply outlook.
– A major fuel supplier in Turkey has told its wholesale customers it will raise diesel prices after Western sanctions on Russian oil companies led to supply issues and increased insurance and financing costs, a document seen by Reuters showed.
– Russian oil major Lukoil is struggling to keep operations running at its sprawling foreign businesses as Western sanctions disrupt oil loadings in Iraq, pump stations in Finland and trading in Switzerland, sources said.
– Global commodities trader BGN sees new sanctions on Russia as an opportunity to boost its presence in the Mediterranean energy products market, its chief executive said on Monday, as it considers investing in petrochemical assets.
Source: Reuters