Asia Diesel Jet Fuel Markets Soften, Regrade Discount Widens
Asia Diesel and Jet Fuel Markets Soften
Asia's diesel and jet fuel markets softened on Thursday, with timespreads for swaps logging a narrower backwardation amid volatile swings day-on-day. Supplies for the prompt market in Asia remained broadly ample, capping strength in the diesel complex.
Refining Margins and Regrade Spread
Refining margins fell below $47 a barrel at Thursday's Asia close, while activity for spot parcels held thin on the window. The regrade spread (JETREG10SGMc1) remained wide, closing at a steeper discount of minus $2.15 a barrel.
Singapore Inventories and Global Developments
Singapore's middle distillates inventories fell to seven-week lows of 8.96 million barrels in the week to May 27. Oil prices jumped over 2% after Iran's Revolutionary Guards targeted a U.S. airbase. A COSCO tanker crossed the Strait of Hormuz, Turkey cut Urals crude imports, and the U.S. sent SPR oil to California for the first time.
Prices
Spot Gas Oil 0.25%: $128.94/bbl (change -3.24). Spot Jet/Kero: $135.64/bbl (change -3.54).
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