Asia’s middle distillates markets softened mostly against a backdrop of thinning spot trading liquidity and softer ICE gasoil futures, though some regional spot tenders did emerge for November.
A slew of sale tenders emerged from South Asia as some refiners started offering November spot lots, but overall spot market activity remained subdued.
Talks of some traders already closing their positions for the year could have resulted in muted market activity these two weeks.
Indonesia’s demand for November spot lots remained robust, with more requirements from state-owned refiner Pertamina for higher-sulfur gasoil.
Markets were also watching China exports for November and December loading. While November volumes look to be on a declining trend from October given better local demand, December exports could surge again if the export margins remain healthy.
Refining margins fell by almost $1 a barrel, giving back all of the previous session’s gains.
Cash differentials for 10 ppm gasoil were little changed as well because of the almost steady backwardation between November and December swaps.
Ready sellers in the prompt early November loading market also limited the fluctuations in cash premiums.
Jet fuel refining margins closed the trading session at $22.76 a barrel, though arbitrage discussions were minimal given the lower profits from a month ago.
The arbitrage window remained open for sellers, but some slowing demand from the West has hindered discussions, one north-east Asian refinery source said.
Regrade remained steady at around a discount of $2.85 a barrel.
SINGAPORE CASH DEALS
– No deals for both fuels.
Source: Hellenic Shipping News
