SINGAPORE: Asian gasoil differentials edged higher on Wednesday on the back of reduced supply as several refineries undergo maintenance, traders said.
The regrade -- the price difference between jet fuel and gasoil -- turned negative, which gives refiners an incentive to maximise gasoil production over jet fuel, they added.
Japan's operating rate increased by 3.7 percent on the week to 77.8 percent in the week to Oct. 15, Reuters calculates using data from the Petroleum Association of Japan.
But Japan's Showa Shell Sekiyu said on Wednesday that it plans to refine 3.7 percent less crude oil for the domestic market from October to December compared with the same period last year.
Showa Shell expects to process 468,600 barrels per day (6.854 million kilolitres) of crude over the three months, the company said.
Sales of kerosene in Japan increased by 12.8 percent on the week while jet fuel sales edged 2 percent higher, the PAJ data showed.
Gasoil sales, however, fell by 5.5 percent.
India's diesel demand declined to 1.3 million barrels per day (bpd) in September, down 170,000 bpd from a year ago and its steepest fall in the past decade, as severe flooding crimped construction and agricultural activities, Energy Aspects said in a note.
Exports of the fuel are likely to remain high until the rains subside, it added.
Traders said that demand is expected to recover once the monsoon season ends, in turn curbing diesel exports.
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