Asia’s middle distillates markets saw some upbeat market activity on the jet fuel front, though gasoil discussions remained muted and under pressure.
Some traders were also looking at export volumes from China for the fourth quarter and waiting on quotas.
Refining margins GO10SGCKMc1 for the fuel dipped slightly back to around $13.25 a barrel. reflecting the continuous weakness and thin liquidity in the paper markets. Cash differentials GO10-SIN-DIF for the end-September and early October spot markets climbed slightly to a discount of 59 cents a barrel, as some buying interest resurfaced.
Jet fuel’s trading window saw a flurry of spot activity as a key major regional trader continued its purchases for prompt deliveries of the aviation fuel
UIT bought up to 629,000 barrels of jet fuel for delivery in end-September to early October so far, Reuters records showed.
Meanwhile, off window, October offers started emerging from northeast Asia after traders had waited with bated breath earlier, with discussions underway.
Regrade JETREG10SGMc1 held its ground at a discount of around 10 cents a barrel, reflecting the continued strength in jet fuel markets.
Source: Reuters
