SINGAPORE: Asia’s jet fuel market snapped more than a month’s silence and recorded its first deal for a July spot cargo, with cash premiums firming slightly as a result on Tuesday.

Jet fuel refining margins, however, fell to around $16.50 a barrel, with the regrade spread steady at a discount of nearly $1.10 a barrel.

Spot premiums for low sulphur diesel lots rose further as early July buyers sought cargoes, following talks of more South Asian/Middle East cargoes heading to northwest Europe.

At least two 90,000 metric ton cargoes were fixed for loading to northwest Europe from Reliance’s Jamnagar refinery in India by end-June, Kpler data and trading sources showed.

Sellers finally emerged for around mid-July loading cargoes in the open market, capping overall gains in spot premiums. Estimated export volumes from China for July could exceed June, according to some data collated by analysts.

However, refining margins for 10 ppm sulphur gasoil gave back past two sessions of gains and fell back to below $18 a barrel against a backdrop of firmer oil futures in the late afternoon trading session.

Oil prices slipped on Tuesday after China cut benchmark lending rates less than some expected, sowing further concern over the oil demand outlook in the world’s largest crude importer.

China’s oil imports from Russia jumped to a record high in May, government data showed on Tuesday, as private refiners continue to snap up sanctioned ESPO and Urals shipments at discounts.

China’s 2023 crude oil demand is expected to grow 3.5% to 740 million metric tons, slower than previously expected, according to an expert at China National Petroleum Corporation’s (CNPC) research arm on Tuesday.