SINGAPORE: Asia’s 10-ppm sulphur gasoil market activity was plagued by illiquidity as discussions stayed muted, with a buy-sell gap in the open market further hindering deals.

The regrade spread, however, widened back to a discount of more than $3.57 a barrel, with the April/May backwardation in the swap market narrowing - showing bearishness on the trading sentiment front for April fundamentals.

Refining margins for 10 ppm sulphur gasoil and jet fuel kicked off the week lower, with volatile crude futures and uncertainty on how northwest Europe fundamentals will pan out weighed.

Cash differentials, likewise, fell to $1.30 per barrel, with a handful of buyers still trying their luck with competitively-priced material.

Saudi Aramco signed an agreement with Chinese partners on Sunday for an oil refinery and petrochemical project in northeast China that is expected to start in 2026 to meet the country’s growing demand for fuel and chemicals.

Australia’s Ampol Ltd said on Monday it has temporarily ceased operating the fluidized catalytic cracking unit (FCCU) at its Lytton refinery in Queensland due to an issue with a slide valve.

Oil prices rose on Monday as investors assessed efforts by authorities to rein in worries about the global banking system, while Russian President Vladimir Putin’s plans to place tactical nuclear weapons in Belarus ratcheted up tensions in Europe.