SINGAPORE: Asia’s 10 ppm sulphur gasoil margins rose on Wednesday on weaker crude prices even as US and Middle East inventory stockpiles posted weekly rises.

Refining margins for 10 ppm sulphur gasoil closed higher at $26.91 a barrel, compared with $25.25 a barrel previously.

Meanwhile, cash differentials for 10 ppm sulphur gasoil closed at $1.60 a barrel, up by 36 cents day-on-day. Jet fuel refining margins edged higher from the previous day, at $25.01 per barrel.

The regrade spread widened further to a discount of $1.90 per barrel.

US crude oil and fuel inventories rose last week, according to market sources citing American Petroleum Institute figures on Tuesday. Crude stocks rose by about 10.5 million barrels in the week ended Feb. 10, they said. Gasoline inventories rose by about 846,000 barrels, while distillate stocks rose by about 1.7 million barrels.

Middle distillate stock levels at Fujairah Oil Industry Zone rose 98,000 barrels to 1.83 million barrels for the week ended Feb. 13, according to industry information service S&P Global Commodity Insights.

Oil dropped for a second day on Wednesday, as an industry report pointed to ample supplies in the United States and anticipation of further interest rate hikes sparked concerns over weaker fuel demand and the economic outlook.

China will make up nearly half of this year’s oil demand growth after it relaxed its COVID-19 curbs, the International Energy Agency (IEA) said on Wednesday, but restrained OPEC+ production could mean a supply deficit in the second half.

OPEC has raised its 2023 global oil demand growth forecast in its first upward revision for months, due to China’s relaxation of COVID-19 restrictions, and trimmed supply forecasts for Russia and other non-OPEC producers, pointing to a tighter market.