SINGAPORE: Asia’s 10-ppm sulphur gasoil margins softened to almost a one-year low, against a backdrop of weaker oil futures despite overall thin market activity after the sanction on Russian oil products started.

The market was weighed by a downtrend in northwest Europe cracks.

Furthermore, February-loading estimates of diesel exports remained sufficient at around 2 million tonnes, almost steady from January, according to a handful of China-based trading analysts.

Refining margins for 10 ppm sulphur gasoil closed the trading session at $25.57 a barrel.

Cash differentials for 10 ppm sulphur gasoil

Jet fuel refining margins fell at a similar pace, resulting in mostly stable regrade values at a discount of 30 cents per barrel.

Buying interest in the swaps market was supported by continuously strong jet fuel demand recovery entering March, cushioning the overall price weakness for the aviation fuel.

Oil producers may have to reconsider their output policies following a demand recovery in China, the world’s second-largest oil consumer, the International Energy Agency’s Executive Director Fatih Birol said on Sunday.

Oil prices inched up on Monday after falling 8% last week to more than three-week lows as concerns that slower growth in major economies may limit fuel consumption outweighed signs of a demand recovery in China, the world’s top oil importer.

Russia has exported about 346,000 tonnes of ultra-low sulphur diesel (ULSD) from the Baltic Sea port of Primorsk to Morocco, Turkey and Tunis between 1-5 February, traders and Refinitiv data showed on Monday. No diesel cargoes are heading to Europe from the Russian Baltic port of Primorsk since the start of February.