Asia Distillates-Diesel trading window activity stays illiquid; regrade flips to discount

SINGAPORE, Jan 21 (Reuters) - Asia’s diesel markets remained illiquid on the trading window despite some February refiner sales still underway, while the regrade spreads flipped into discount for the first time since mid-November on Wednesday. The diesel front-month east-west price spread widened from the previous trading session to a nearly $40 per metric ton discount amid firmer ICE gasoil futures. So far for January, India-origin diesel exports to Europe were expected to hit around 350,000 metric tons, data from shipbroking sources and LSEG ship-tracking showed. In the northeast Asia region, at least two more refiners were offering spot 10ppm sulphur gasoil cargoes in the market. Refining margins (GO10SGCKMc1) extended gains for a third straight session to around $20.9 a barrel. The 10ppm sulphur gasoil cash differentials (GO10-SIN-DIF) were little changed at 16 cents per barrel amid persistently thin window trades. For jet fuel, the Asia-U.S. west coast price spreads on paper narrowed slightly, with sentiment turning slightly cautious as Asian supplies remain ample in the near term. Regrade (JETREG10SGMc1) slipped into a discount for the first time in around two month to nearly minus 10 cents a barrel at the market’s close, amid a firmer market performance on gasoil swaps. SINGAPORE CASH DEALS (O/AS) No deal for gasoil or jet fuel INVENTORIES U.S. crude oil and gasoline stockpiles were expected to have risen last week, while distillate inventories likely fell, a preliminary Reuters poll showed on Tuesday. (EIA/S) Middle distillate stocks held at the Fujairah Oil Industry Zone for the week ended January 19 rose to the highest of 3.54 million barrels since October last year, according to industry information service S&P Global Commodity Insights. (FUJAIRAH/) NEWS Oil production at Kazakhstan’s vast Tengiz oilfield, one of the world’s largest, could be halted for another 7-10 days after shutting down on Sunday, cutting crude exports via the Caspian Pipeline Consortium, three industry sources told Reuters. Venezuela’s interim president Delcy Rodriguez said on Tuesday that the country has received $300 million from oil sales, the first proceeds from U.S. President Donald Trump’s announced 50-million-barrel oil supply deal with Caracas, following the capture of President Nicolas Maduro earlier this month. Indian refiners are buying Middle Eastern oil from the spot markets to partly replace Russian oil, two refining and trade sources said on Wednesday, part of an effort to help New Delhi negotiate a trade deal with Washington. Drone fragments caused a fire at the Afipsky oil refinery in Russia’s Krasnodar region without inflicting any injuries or damage, a local emergencies centre said early on Wednesday. The International Energy Agency revised its 2026 global oil demand growth forecasts higher in its latest monthly oil market report on Wednesday, suggesting a slightly narrower surplus for the market this year. Maintenance work on single point mooring-3 at the Caspian Pipeline Consortium’s Russian Black Sea terminal is in its final stages, the CPC said on Wednesday, and it is preparing to dismantle another SPM damaged by a Ukrainian naval drone. PRICES MIDDLE DISTILLATES CASH ($/BBL) ASIA Change Prev RIC CLOSE Close Spot Gas Oil 0.25% 83.74 1.39 82.35 (GO25-SIN) GO 0.25 Diff -0.08 0.01 -0.09 (GO25-SIN-DIF) Spot Gas Oil 0.05% 83.64 1.39 82.25 (GO005-SIN) GO 0.05 Diff -0.18 0.01 -0.19 (GO005-SIN-DIF) Spot Gas Oil 0.001% 83.98 1.39 82.59 (GO10-SIN) GO 0.001 Diff 0.16 0.01 0.15 (GO10-SIN-DIF) Spot Jet/Kero 84.68 1.05 83.63 (JET-SIN) Jet/Kero Diff 0.93 -0.06 0.99 (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)