Window activity brisk despite easing market structures

Asia's diesel markets were brimming with spot activity on the trading window, although market structures and the east-west price spreads eased on the last trading day this month.

The diesel east-west price spreads narrowed for a second straight session to around $39 per metric ton discounts, factoring in the continuous weakness in front-month ICE gasoil futures.

The October-November timespreads eased by 13 cents from the previous trading session.

Meanwhile, September exports from India to Europe were likely at fresh highs, Vortexa and Kpler shiptracking data showed, in line with earlier market expectations.

Extending losses, the 10ppm sulphur gasoil refining margins (GO10SGCKMc1) slipped by nearly $1 to $20.7 a barrel.

Cash differentials (GO10-SIN-DIF) held its ground at around $1.2 a barrel, despite softer market structures, as a higher-priced deal surfaced on window.

Jet fuel sales for October from a China refiner were brisk, though discussions were still prevalent in the discounted territory.

Regrade (JETREG10SGMc1) slipped back to wider discounts of $1.35 a barrel.

SINGAPORE CASH DEALS

- One gasoil deal, one jet fuel deal

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 Monday.

NEWS

- China's manufacturing activity shrank for a sixth month in September, an official survey showed on Tuesday, suggesting producers are waiting for further stimulus to boost domestic demand, as well as clarity on a U.S. trade deal.

- Oil prices fell on Tuesday ahead of another anticipated production increase by OPEC+ and as the resumption of oil exports from Iraq's Kurdistan region via Turkey reinforced market expectations of a supply surplus.

- Singapore's Aster Chemicals and Energy is investing $125 million to upgrade its single buoy mooring and pipeline infrastructure near Bukom refinery, the company said on Tuesday.

- A nationwide strike by Nigeria's oil workers union has shut the offices of the country's oil regulator and state oil company, threatening fuel supply and trade across West Africa after the Dangote refinery dismissed more than 800 unionised staff.

PRICES