Asia distillates: Diesel market softens; regrade spread widens
USO•USO•USO•USO•Asia’s diesel refining margin fell to about $65 a barrel as regional spot volumes held steady, while the jet fuel regrade spread widened to a $1.44-per-barrel premium.
Asia’s diesel market softened, with steady regional spot volumes capping margin strength. The diesel refining margin closed lower at about $65 a barrel and has remained between $60 and $70 in recent sessions. Cash differentials fluctuated near $1 a barrel amid muted trading and a wide bid-ask gap.
The jet fuel regrade spread widened to a stronger premium, closing at $1.44 a barrel. Jet fuel timespreads also traded into slightly stronger backwardation.
South Korean diesel exports are expected to hold firm into next month amid steady spot sales. Singapore oil product inventories fell to a three-week low, driven by declines in middle and light distillate stocks.
