Asia’s middle distillates markets for the week were trading in a tight range, though physical December cargoes remained heavily discussed and Friday paper trades in full swing.
Paper trading activity on the window picked up on the last trading day for November cargoes, reversing the early week’s tepid activity.
Term negotiations came into full play, with at least one more major refiner in Taiwan offering their sale cargoes for next year loading. Discussions were mostly at premiums of 10-30 cents a barrel so far, multiple trade sources said.
December market outlooks remained mixed in the spot market, as evidenced by the differing price discussion levels, with refiners’ spot sales done at premiums in the early week but the market falling to slight discounts in the two trading sessions.
On the jet fuel front, discussions remained muted as sellers were still missing in action from December spot sales, despite a healthy regrade value, one source said.
Refining margins for 10ppm sulphur gasoil were around 50 cents higher week on week, closing the trading week at around $15.4 a barrel.
Spot premiums for 10ppm sulphur gasoil were softer at 70 cents per barrel.
Regrade was little changed week on week, still shy of hitting $1 a barrel for now – though the market remained bullish as evidenced by discussions still going on at premiums, one source said.
