Asia’s diesel markets softened further, with timespreads and cash premiums starting the week on a lower note, against a backdrop of weakening ICE gasoil markets and talks of more supplies.
Several trade sources say there were heavier expectations for China-origin exports to increase in December to 600,000 metric ton levels, compared with earlier expectations of 200,000-300,000 tons, given firm margins in comparison with gasoline.
Ultimately, there should be more spot volumes available now from refiners or exporters looking to capitalise on current margins, compared with in November, they added.
Meanwhile, both traders and refiners were still in discussions for their term deals for next year.
For most cargoes – both 10ppm and jet fuel, discussions remained in the premium territory, firmer from this year’s deals, reflecting the earlier bullish trading sentiment.
Giving back most of the gains since early November, refining margins fell to around $24 per barrel.
Cash differentials (GO10-SIN-DIF) eased further to premiums of around $2.2 a barrel, hovering at one-month low levels.
Jet fuel demand for December was still prevalent, as evidenced by continued spot purchases from Indonesia’s Pertamina.
Regrade barely moved, steadying at 65-70 cents premiun per barrel.
SINGAPORE CASH DEALS
– No jet fuel or gasoil deal
REFINERY NEWS
– Sinochem’s Quanzhou Petrochemical will start a two-month maintenance for its entire plant in southern China’s Fujian province from November 25, according to a company statement posted on its official WeChat platform on Monday.
NEWS
– Oil prices took a breather on Monday after last week’s fall of about 3%, as investors weighed the chances for a U.S. rate cut against the prospect of a Russia-Ukraine deal that could free up more Russian supply through an easing of sanctions.
– Licences to supply methanol as a marine fuel in the world’s largest bunker port, Singapore, will be issued from January 1, 2026, the Maritime and Port Authority of Singapore (MPA) said in a statement on Monday.
– China is importing unusually large quantities of crude oil from Indonesia, a trend traders say is a way to mask shipments of sanctioned Iranian crude trans-shipped in waters off Malaysia amid greater scrutiny of cargoes originating from Malaysia.
