Asian Diesel Paper Market Quiet, Spot Spreads Rebound

[Asian Diesel Paper Market Quiet, Spot Spreads Rebound]

⑴ Trading activity in the Asian diesel window remained thin on Tuesday, with over-the-counter negotiations for November spot cargoes still ongoing, while both time spreads and spot premiums rebounded from the previous session.

⑵ Spot activity for November-loading cargoes in Southeast Asia continued, with offers for Malaysian cargoes and buying interest from Vietnam emerging. Traders also kept an eye on the start of term contract negotiations, with December spot sales potentially appearing next week.

⑶ Rumors of declining regional export volumes resurfaced, though specific details could not be confirmed, fueling expectations of tighter supply.

⑷ Diesel refining margins recovered to just above $64 per barrel, with Singapore diesel spot differentials climbing back above $1 per barrel as the November-December backwardation widened.

⑸ For jet fuel, traders remained cautious on near-term fundamentals as regional export plans stayed unclear, but the spot market moved back into a premium range as the November-December backwardation strengthened.

⑹ Separately, sources said Russian refineries raised diesel output in October after the government granted export quotas. Attention now turns to the implementation of regional export plans and the impact of OPEC+ meeting outcomes on the distillate market.