SINGAPORE: Asia’s 10-ppm sulphur gasoil margins and jet fuel margins posted their sixth consecutive week-on-week losses on Friday, weighed down by weak demand sentiment.

Refining margins for 10ppm sulphur gasoil closed the trading session at $11.58 a barrel, while jet fuel refining margins were at $11.18 a barrel.

Cash differentials rose slightly to 28 cents a barrel.

Asia’s regrade value hovered near a two-month high of minus 40 cents by the end of the trading session.

European demand remains sluggish, with inventories staying ample, following heavy stockpiling prior to the Feb. 5 ban on seaborne imports of Russian refined products, said Refinitiv Oil Research in a weekly report.

This is forecast to be reversed from 2H 2023, as the El Nino weather phenomenon is set to lift global temperatures, raising power-generation usage and diesel demand in Europe, as well as seasonal maintenances in the autumn, the report added.

India’s Nayara Energy, MRPL offers May diesel, jet fuel.

Oil prices posted mild gains on Friday, but headed for a second week of declines as disappointing US economic data and uncertainty over further interest rate hikes weighed on the demand outlook.

Refining giant Sinopec Corp sees China’s diesel and gasoline demand growing faster in the second quarter than in the first three months of this year alongside the Chinese economic recovery, a senior company executive said on Friday.

Russian Deputy Prime Alexander Novak said on Thursday the OPEC+ group of leading oil producers saw no need for further output cuts despite lower-than-expected Chinese demand, but that the organisation can always adjust policy if necessary.