The beginning of the week saw mixed trends in Asia's middle distillates markets, characterized by falling margins but firm cash differentials and regrade amid thin spot activity. Spot market differentials for end-December to January loading parcels were slightly supported, closing at a 16-cent barrel discount on Monday, compared to 22 cents on Friday. The market was buoyed by a lack of sellers, and more activity is expected as refiners confirm contracts for the next year. Refining margins for 10 ppm sulfur gasoil and jet fuel weakened at slightly below $22 a barrel. Regrade for January rose to a premium of 10 cents, despite some selling and limited demand-supply cues for aviation fuel. The region awaits developments in loadings for December from northeast Asia to northwest Europe, which have not yet emerged according to ship-tracking data from Kpler. Additionally, other notable news includes a decline in China's consumer prices, Saudi Aramco's commitment to supply full contractual volumes in January 2024, the U.S. Department of Energy's plan to buy up to 3 million barrels of crude oil for the Strategic Petroleum Reserve, and Chinese refiners seeking cheaper supply due to higher-than-expected prices for Saudi Aramco crude in January.

SOURCE:GOOGLE