Asia’s middle distillates markets slipped for a second straight session as weakness in the gasoil futures and paper swaps market continued on position clearing, against a backdrop of volatile oil futures and limited physical cargo discussions.
Cash differentials GO10-SIN-DIF slipped to a near three-month low, closing the trading session at $1.47 a barrel. A buy-sell gap hindered deals.
Discussions for physical cargoes remained subdued in the open trading market and spot tenders for November parcels turned scant, weighing on market activity further.
Refining margins for 10ppm sulphur gasoil closed the session 7% lower from the previous session.
Jet fuel refining margins fell as well but at a slower pace in comparison with some prompt sell-offs in the November paper swap market for gasoil.
Regrade narrowed slightly to a discount of $2.35 a barrel as a result.
Source: Hellenic Shipping News
