SINGAPORE, Jan 26 (Reuters) - Asia’s diesel market structures firmed on Monday, with support coming from the futures market and the West, while regrade spreads weakening to further discounts.
ICE gasoil jumped 1.7% in late Asian trade, with east-west price spreads widening to more than discounts of $45 per metric ton.
Some expectations of cold weather demand propping up market fundamentals in the near-term remained supportive, in addition to worries on the Middle East situation, several regional trade sources said.
Extending gains, refining margins (GO10SGCKMc1) closed the trading session at around $21.7 a barrel.
Cash differentials (GO10-SIN-DIF) rose to nearly premiums of 30 cents per barrel, though spot activity stayed curtailed on the trading window.
More jet fuel February cargoes were under negotiations, with one northeast Asian refiner selling cargoes via a sales tender that closes today.
Regrade (JETREG10SGMc1) discounts widened further to minus nearly 70 cents per barrel.
<h3>SINGAPORE CASH DEALS (O/AS)</h3>
<ul>
<li>No gasoil deal, one jet fuel deal</li>
</ul>
<h3>REFINERY NEWS (REF/OUT)</h3>
<ul>
<li>Exxon Mobil Corp (XOM.N) said on Saturday it was idling units at its Baytown, Texas crude oil refining and petrochemical complex due to freezing weather expected over the next three days, according to a community warning notice posted online.</li>
<li>Vitol plans to partially shut down its 300,000 barrel-per-day Saras oil refinery in Italy for about two months from early March, according to an alert from industry monitor IIR seen by Reuters.</li>
</ul>
<h3>NEWS</h3>
<ul>
<li>Few refineries on Sunday reported problems on the first day severe cold descended across the U.S. Gulf Coast, home to about half of the country’s crude oil refining capacity.</li>
<li>South Korea’s S-Oil said on Monday it had logged a 91% surge in fourth-quarter operating profit and expects first-quarter refining margins to remain robust due to steady demand, supply disruptions and the planned closure of a U.S. refinery.</li>
<li>Tengizchevroil, which operates Kazakhstan’s giant Tengiz oilfield, has begun a gradual resumption of production after an extended outage, it said on Monday.</li>
<li>Oil prices edged higher on Monday after climbing more than 2% in the previous session, as output disruptions in major U.S. crude-producing regions and tensions between the U.S. and Iran boosted prices. (O/R)</li>
</ul>
<h3>PRICES</h3>
<h3>MIDDLE DISTILLATES</h3>
CASH ($/BBL) ASIA Change Prev RIC
CLOSE Close
Spot Gas Oil 0.25% 85.55 1.61 83.94 (GO25-SIN)
GO 0.25 Diff 0.03 0.08 -0.05 (GO25-SIN-DIF)
Spot Gas Oil 0.05% 85.59 1.61 83.98 (GO005-SIN)
GO 0.05 Diff 0.07 0.08 -0.01 (GO005-SIN-DIF)
Spot Gas Oil 0.001% 85.81 1.61 84.20 (GO10-SIN)
GO 0.001 Diff 0.29 0.08 0.21 (GO10-SIN-DIF)
Spot Jet/Kero 85.58 0.99 84.59 (JET-SIN)
Jet/Kero Diff 0.73 -0.17 0.90 (JET-SIN-DIF)
For a list of derivatives prices, including margins, please double click
the RICs below.
Brent M1 (BRENTSGMc1)
Gasoil M1 (GOSGSWMc1)
Gasoil M1/M2 (GOSGSPDMc1)
Gasoil M2 (GOSGSWMc2)
Regrade M1 (JETREGSGMc1)
Regrade M2 (JETREGSGMc2)
Jet M1 (JETSGSWMc1)
Jet M1/M2 (JETSGSPDMc1)
Jet M2 (JETSGSWMc2)
Gasoil 500ppm-Dubai Cracks M1 (GOSGCKMc1)
Gasoil 500ppm-Dubai Cracks M2 (GOSGCKMc2)
Jet Cracks M1 (JETSGCKMc1)
Jet Cracks M2 (JETSGCKMc2)
East-West M1 (LGOAEFSMc1)
East-West M2 (LGOAEFSMc2)
LGO M1 (LGOAMc1)
LGO M1/M2 (LGOASPDMc1)
LGO M2 (LGOAMc2)
Crack LGO-Brent M1 (LGOACKMc1)
Crack LGO-Brent M2 (LGOACKMc2)

Asia's diesel market strengthened on January 26, supported by futures and West market trends, despite widening regrade discounts. ICE gasoil rose 1.7%, with east-west price spreads exceeding $45 per metric ton. Cold weather demand and Middle East tensions contributed to market stability. Refining margins closed at $21.7 per barrel, while cash differentials approached 30 cents per barrel. Exxon Mobil is idling units in Texas due to freezing weather, and Vitol plans a two-month shutdown in Italy. S-Oil reported a 91% increase in Q4 operating profit, anticipating robust margins ahead.

- Asia’s diesel market showed firmness supported by futures and Western markets, with ICE gasoil increasing by 1.7%.  
- This rise accompanies expectations of cold weather demand and ongoing concerns regarding geopolitical tensions in the Middle East.  
- Additionally, refining margins closed at approximately $21.7 a barrel, reflecting a sustained interest in the sector.

Asia Distillates-Diesel market backwardation steepens; regrade discounts widen