SINGAPORE, Dec 23 (Reuters) - Asia's middle distillates recorded slowing activity in the trading window on Monday, though January offers still continued from key refineries and the regrade discount breached a six-month wide level.
Spot refiner sales stayed brisk ahead of the holidays, with the jet fuel market turning to premiums again for second-half January loading deliveries. Talks of the market still being slightly short in northeast Asia became prevalent.
The premiums for jet fuel could be traders' way of factoring in the current backwardated swaps price structure, one source said.
Meanwhile, South Korea's major refineries have so far sold around 11 January cargoes, according to Reuters records, a slight increase from December. More sales are still expected in the next few trading sessions, with GS Caltex already offering more cargoes.
Refining margins kickstarted the week slightly higher at around $16.4 a barrel, tracking some gains in the paper markets
Spot premiums gained further to 67 cents a barrel, reflecting firmer bids in the trading window - though deals and offers were both scant - limiting overall open market action for January.
Regrade , however, widened to a six-month wide discount of around $1.50 a barrel, reflecting the weakness jet fuel swaps.
SINGAPORE CASH DEALS
- No deals for both fuels
NEWS
- Oil prices rose on Monday as lower-than-expected U.S. inflation data revived hopes for further policy easing, although the outlook for a supply surplus next year weighed on the market.
- India's November crude imports showed Middle Eastern oil at a 9-month high while Russia accounted for its smallest share in three quarters, ship tracking data obtained from sources showed.
PRICES
MIDDLE DISTILLATES
CASH ($/BBL) ASIA CLOSE Change Prev RIC
Close
Spot Gas Oil 0.5% 83.52 0.79 82.73
GO 0.5 Diff -5.50 0.02 -5.52
Spot Gas Oil 0.25% 89.11 0.79 88.32
GO 0.25 Diff 0.09 0.02 0.07
Spot Gas Oil 0.05% 89.40 0.79 88.61
GO 0.05 Diff 0.38 0.02 0.36 <GO005-SIN-DIF
>
Spot Gas Oil 0.001% 89.69 0.81 88.87
GO 0.001 Diff 0.67 0.05 0.62
Spot Jet/Kero 87.57 -0.24 87.81
Jet/Kero Diff 0.01 -0.08 0.09
For a list of derivatives prices, including margins,
please double click the RICs below.
Brent M1
Gasoil M1
Gasoil M1/M2
Gasoil M2
Regrade M1
Regrade M2
Jet M1
Jet M1/M2
Jet M2
Gasoil 500ppm-Dubai
Cracks M1
Gasoil 500ppm-Dubai
Cracks M2
Jet Cracks M1
Jet Cracks M2
East-West M1
East-West M2
LGO M1
LGO M1/M2
LGO M2
Crack LGO-Brent M1
Crack LGO-Brent M2
(Reporting by Trixie Yap)
((trixie.yap@thomsonreuters.com;))
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