Middle distillate spot market in Asia recovers, diesel premium softens, jet fuel procurement demand emerges

⑴ The Asian diesel market structure eased somewhat on Tuesday. Although there were no actual deals in the spot trading window, cash premiums softened while momentum for June spot sales picked up. Several refiners' selling interest for June re-emerged in the spot market, and reports indicate at least one regional supplier is seeking to ship early June cargoes.⑵ Diesel refining margins remained around $49.6 per barrel, with cash differentials falling by 30 cents to $5.40 per barrel, reflecting a narrowing of the spot premium over swap markets. In the jet fuel segment, a wave of buying activity emerged in Southeast Asia, with importers from Indonesia and Vietnam both seeking delivered cargoes. The price spread between jet fuel and diesel further narrowed to just over a $1 per barrel premium.