Diesel backwardation eases; cash diffs sets new record again

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Asia's diesel market structures eased slightly, with ICE gasoil futures declining, though cash differentials rose again to a new record of more than $28 a barrel. Prompt selling activities were ongoing by some traders and suppliers with swing barrels, regional buyers said, though further details could not be confirmed on the premium basis.Meanwhile, in northeast Asia, Taiwan's FPCC said it will maintain April term deliveries and is unlikely to have spot cargoes, while some traders expect one South Korean oil major to still have exports available.The east-west price spreads narrowed into smaller discounts of around $120-130 per metric ton, reflecting the softer performance in ICE gasoil markets.Refining margins (GO10SGCKMc1) declined to a one-week low of around $33 a barrel. On the trading window, the diesel cash differentials (GO10-SIN-DIF) still rose to $28.1 a barrel despite a weaker paper market as buying interest stayed firm. Jet fuel markets firmed slightly, with markets receiving some support from Indonesia's Pertamina seeking more spot cargoes. Regrade (JETREG10SGMc1) softened back to $7 a barrel, reflecting the decline in gasoil markets.SINGAPORE CASH DEALS - No gasoil deal, one jet fuel dealINVENTORIES- U.S. crude oil stockpiles were expected to have risen last week, while distillate and gasoline inventories likely fell, a preliminary Reuters poll showed on Monday. NEWS- Oil prices plummeted 7% on Tuesday after soaring to a more than three-year high in the previous session as U.S. President predicted the war in the Middle East could end soon, easing concerns about prolonged disruptions to oil supplies. - Saudi Arabia's Aramco, the world's top oil exporter, said on Tuesday there would be "catastrophic consequences" for the world's oil markets if the Iran war continues to disrupt shipping in the Strait of Hormuz.- China roared into 2026 with exports far outstripping forecasts, fuelled by red-hot electronics demand, putting the economy on track to top last year's record $1.2 trillion trade surplus - barring a wider energy and shipping shock from PRICESMIDDLE DISTILLATESCASH ($/BBL)ASIA CLOSEChangePrev CloseRICSpot Gas Oil 0.25% 141.73-24.91166.65(GO25-SIN)GO 0.25 Diff8.62-0.809.42(GO25-SIN-DIF)Spot Gas Oil 0.05%142.38-24.91167.30(GO005-SIN)GO 0.05 Diff9.27-0.8010.07(GO005-SIN-DIF)Spot Gas Oil 0.001%161.20-23.73184.93(GO10-SIN)GO 0.001 Diff28.090.382...

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