Asia’s diesel spot activity ticked up as refiners emerged to start their February sales, though discussions on the trading window remained muted and market structure remained in a slight backwardation.
At least three major refiners in northeast Asia sought to sell their regular spot volumes for February, in line with earlier forecasts of ample regional supplies.
Indonesia’s Pertamina also sought its first delivery of spot gasoil for 2026 via a tender.
Refining margins (GO10SGCKMc1) extended losses and closed at around $18.2 a barrel.
Cash differentials (GO10-SIN-DIF) were rolled over from the previous session at premiums of 13 cents per barrel, given a lack of activity on the trading window.
Meanwhile, spreads between 10ppm sulphur gasoil and 500ppm sulphur gasoil have narrowed since this week given the better margins to extract jet fuel or kerosene instead, some trade sources say.
Asian jet fuel market structures eased, reversing some of the previous session’s strength, amid expectations of sufficient supplies.
The arbitrage with the U.S. West Coast remained widely open, comparing February swaps in both regions.
Regrade (JETREG10SGMc1) continued to fluctuate within premiums of 80-90 cents per barrel.
SINGAPORE CASH DEALS
– No deal for gasoil or jet fuel
INVENTORIES
– U.S. crude oil stocks fell while gasoline and distillate inventories rose last week amid busy refining activity, the Energy Information Administration said on Wednesday.
– Singapore’s distillate stockpiles declined slightly on week despite lower net exports of both diesel and jet fuel, official government data showed on Thursday.
Source: Reuters
