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Asia Distillates-Singapore regrade value hits ten-month high

Asia’s Singapore regrade value hit a 10-month high on Thursday, weighed by persisting weakness in the gasoil market, while the outlook for jet fuel demand was slightly more optimistic.

The jet/gasoil regrade value for December climbed to parity on Thursday after holding in discounts per barrel since end-January, based on LSEG Oil Research data.

Prospects of better jet fuel demand in the United States amid the holiday season helped support the market in Asia, with cash differentials holding stable between premiums of 55 to 60 cents a barrel in recent sessions.

In contrast, the gasoil market remained at risk of downside on expectations of ample December supplies.

Cracking margins fell day-on-day to $23.88 a barrel at the Asia close on Thursday, while cash differentials GO10-SIN-DIF eased to discounts of 31 cents a barrel.

SINGAPORE CASH DEALS

– No gasoil deal, no jet fuel deal.

INVENTORIES

– U.S. distillate stockpiles, which include diesel and heating oil, fell by 1.02 million barrels to 105.6 million barrels, the lowest since May 2022, EIA data showed. Analysts had expected a 761,000-barrel drop.

– Singapore’s middle distillates stockpiles were little changed from last week, holding at about 10.42 million barrels in the week to Nov. 22, official data showed Thursday.

NEWS

– Oil prices fell on Thursday after OPEC+ postponed a ministerial meeting, leading to speculation that producers might cut output less than earlier anticipated.

– Russia’s oil shipments from its western ports may fall in December amid record refinery runs planned for next month and a recent lifting of the state’s fuel export ban, traders said.

– The suspension of U.S. sanctions on Venezuelan oil has rattled its biggest customers, China’s independent refiners, who are now holding off on making new purchases amid wide discrepancies in offer prices, trading sources say.

– India plans to ask state-run Oil and Natural Gas Corp to consider launching a rights issue to help fund green projects at refining arm Hindustan Petroleum Corp, two sources said, an exercise that could raise about $1.9 billion.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Sohini Goswami)

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