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Asia Distillates-Gasoil cash premiums steady, margins extend declines

Asia’s 10 ppm sulphur gasoil cash premiums steadied on Wednesday after sliding for four straight sessions, while refining cracks declined further.

Spot cash premiums closed at $1.77 a barrel, while margins continued to slide, dipping below $27 a barrel at the Asia close.
“We expect Chinese exports to weigh further on Singapore cracks, opening the arbitrage to Northwest Europe,” said FGE in a note this week.
Jet fuel also softened, with refining margins sliding to $24.20 a barrel, while cash premiums eased on Wednesday amid a softer market structure.
Meanwhile, the regrade spread widened to $2.52 a barrel.

SINGAPORE CASH DEALS
– No deal for jet fuel, one deal for gasoil.

INVENTORIES
– Middle distillates stocks held at Fujairah Oil Industry Zone slipped to 1.6 million barrels for the week ended Oct. 16, hitting six-week lows, according to industry information service S&P Global Commodity Insights.

REFINERY NEWS REF/OUT
– Russia’s offline primary oil refining capacity has been revised up by 14% to 4.6 million metric tons in October from the previous plan, industry sources said and Reuters calculations showed on Wednesday.

OTHER NEWS
– Oil prices surged nearly 2% on Wednesday as tensions escalated in the Middle East after hundreds were killed in a blast at a Gaza hospital, sparking concerns about potential oil supply disruptions from the region.

– China’s oil refinery throughput in September hit a record daily rate, data showed on Wednesday, as refiners increased run rates to cater for strong demand for transport fuel over the Golden Week holiday and improving manufacturing.

– Oil freight rates from Russia’s Baltic ports to India are up some 50% since last week as more shipowners quit the market after the first U.S. sanctions on shipowners carrying Russian crude priced above a G7 cap, three sources said.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Varun H K)

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