Diesel timespreads ease; east-west spread hits two-month widie

Asia's diesel markets eased at the start of the month, though east-west spreads hit two-month wide discounts, with window spot activity slowing slightly and traders eyeing August supply-demand fundamentals.

Traders were looking through the start of August spot offers from major northeast Asian refiners in the coming days, though supplies could remain sufficient in the near-term.

The front-month east-west price spread widened to its largest discounts since early July of around $70 per metric ton, tracking the softness in Asian swap prices ahead of ICE gasoil July futures contract expiry next week.

Refining margins (GO10SGCKMc1) climbed further to slightly more than $45 a barrel.

Cash differentials (GO10-SIN-DIF) gave back some of previous session gains, closing at around $1.2 a barrel.

Meanwhile jet fuel spot discussions picked up on the trading window, while markets are tuned in to the start of August sale negotiations, which are slated soon.

Regrade (JETREG10SGMc1) narrowed further to discounts of 30-40 cents per barrel.

SINGAPORE CASH DEALS

- No gasoil deal, one jet fuel deal

INVENTORIES

- U.S. crude oil inventories fell again last week while gasoline inventories also declined, market sources said, citing data from the American Petroleum Institute released on Tuesday.

- Middle distillates stocks held at Fujairah Oil Industry Zone rose week on week to nearly 1.5 million barrels for the week ended June 29, according to industry information service S&P Global Commodity Insights.

REFINERY NEWS

- An explosion at the alkylation plant of Pemex's Antonio Dovali Jaime refinery in Salina Cruz, Oaxaca, left three workers injured, Mexican newspaper El Universal reported on Tuesday.

NEWS

- Vietnam's government has extended its suspension of some fuel taxes and cuts to other levies by three months until the end of September, the Ministry of Industry and Trade said on Wednesday.

- The United Arab Emirates boosted crude oil and condensate exports to a record high in June, preliminary Kpler and Vortexa ship-tracking data showed, shortly after the Gulf producer left OPEC.

- Swiss-based commodities trading house Mercuria and Italian oil and gas major Eni ENI.MI have agreed to set up a joint venture, the companies said on Wednesday, reflecting a trend for trading partnerships to capitalise on volatile markets.

PRICES