Asia Distillates-Markets turn upbeat; Vitol buys more prompt cargoes on window

Asia’s middle distillates markets recorded upbeat trading momentum on window and on a spot tender front for November cargoes, as near-term bullish outlooks remained prevalent.

Offers emerged again from one of Taiwan’s key oil majors via a sales tender for November spot diesel cargoes.

Sales for northeast Asia-origin spot cargoes continued to be done at smaller discounts of around 20-30 cents a barrel, in line with earlier expectations.

Refining margins GO10SGCKMc1 gained slightly above $13 a barrel, gaining around 30 cents from the previous trading session.

On window, Vitol continued its procurement spree from earlier, buying at least three cargoes. Cash premiums GO10-SIN-DIF firmed to 55 cents a barrel as a result of the buying interest.

The western trading house has so far bought 1.05 million barrels for loading between Oct. 28 and Nov. 10.

Jet fuel markets were also supported by expectations of demand strength and also a continuously wide arbitrage price spread between Asia and the U.S. west coast, market sources said.

There should be an incline in Japan’s spot imports for October especially for kerosene, one of the sources added.

Spot cargoes for prompt November delivery are definitely at premiums for now, a second source added, though it is unclear if buyers can pay up to more than $1 a barrel.

Meanwhile, the arbitrage window between Asia and the U.S. west coast has been economical for some sellers given the slight decline in freight costs as well.

However, a portion of markets stayed cautious on the sustainability of this bullish rout as they were worried if demand could maintain this momentum.
Regrade JETREG10SGMc1 eased after past two sessions of gains to close at a premium of 40 cents a barrel.

SINGAPORE CASH DEALS O/AS

– Three gasoil deals, no jet fuel deals

INVENTORIES

– U.S. crude oil stockpiles likely rose last week, while distillate and gasoline inventories were seen down, a preliminary Reuters poll showed on Monday.

REFINERY NEWS REF/OUT

– Iraq’s Kerbala refinery will resume operations on Tuesday after completing maintenance works, the oil ministry said on Monday.

– Shell SHEL.L said on Monday there was no impact to operations after an oil leak over the weekend from a land-based pipeline at Shell Energy and Chemicals Park Singapore on Bukom island, adding that the leak had been stopped.

NEWS

– Australian fuel retailer Viva Energy VEA.AX said on Tuesday that softening market conditions, lower tobacco sales and rising business costs could impact earnings at its commercial and industrial operations, sending shares to a more than one-and-a-half year low.

– China has set crude oil import quota for non-state-owned firms at 257 million metric tons (5.14 million barrels per day) for 2025, the commerce ministry said on Tuesday.

– Oil prices eased on Tuesday as the top U.S. diplomat renewed efforts to push for a ceasefire in the Middle East and as slowing demand growth in China, the world’s top oil importer, continued to weigh on the market.

– Indonesia’s agriculture minister on Tuesday reaffirmed the country’s plan to implement a 40% mandatory biodiesel mix with palm oil-based fuel, known as B40, starting in January.
Source: Reuters (Reporting by Trixie Yap; Editing by Shreya Biswas)