Asia Distillates-Diesel market structures little changed; Asia-USWC jet fuel arbs widen

SINGAPORE, Jan 16 (Reuters) - Asia's diesel markets continued to see a thin bout of trading liquidity on the window, though a flurry of refiner sale activities for February were underway and paper backwardation held firm from the previous trading session.

February refiner spot sales took the market's center stage for the week, with strong expectations on ample supplies still prevalent.

Markets were still being discussed at discounts for these February shipments, with more offers likely to emerge from China next week, trade sources said.

The east-west price spreads widened week on week to discounts of nearly $35 per metric ton in the past two trading sessions, hovering at its widest in a month.

Traders were expecting more swing sellers to pivot their barrels west soon, if the price gap continues to trade at such levels, despite freight costs on this trade route still remaining high.

Refining margins GO10SGCKMc1 held firm at $18.8 a barrel, inching up nearly 50 cents from a week earlier.

A lack of 10ppm sulphur gasoil window trading activity limited movements in cash differentials GO10-SIN-DIF, with values inching slightly up to premiums of 13 cents per barrel, higher by 7 cents week on week.

Likewise diesel, February jet fuel spot sales were underway - though deals were mostly done at premiums.

The Asia-U.S. west coast price spread rebounded on Friday, to more than $23 a barrel levels, though the difference narrowed week on week, despite. A handful of shipping enquiries from traders to ship cargoes on this trade route still emerged this week.

Regrade JETREG10SGMc1 premiums narrowed slightly to 30-40 cents a barrel.

SINGAPORE CASH DEALS O/AS

- No deal for gasoil or jet fuel

INVENTORIES

- Total oil product stocks independently held in the Amsterdam-Rotterdam-Antwerp $(ARA)$ refining and storage hub rose by over 4% on the week to their highest since September, data from Dutch consultancy Insights Global showed on Thursday. ARA/

NEWS

- The administration of President Donald Trump plans to finalize 2026 biofuel blending quotas by early March, keeping them close to its initial proposal while dropping a plan to penalize imports of renewable fuels and feedstocks, according to two sources familiar with the plans.

- Chevron is expected to receive an expanded Venezuela license from the U.S. government this week that could allow for increased production and exports from the South American country, three oil industry sources told Reuters on Wednesday.

- The European Commission on Thursday said it had lowered the price cap on Russian oil to $44.10 per barrel from February 1 to constrain Russia's oil revenues.

- Russia's seaborne oil products exports in December were up by 17% from November at 9.069 million metric tons, driven by higher fuel output and a seasonal decline in domestic demand, data from industry sources and Reuters calculations showed.

PRICES

(Reporting by Trixie Yap; Editing by Tasim Zahid)

((trixie.yap@thomsonreuters.com;))