Asia Distillates-Diesel market softens; regrade spread widens

SINGAPORE, Oct 22 (Reuters) - Asia's diesel market softened as steady regional spot volumes capped the strength in margins, while regrade spread widened into a stronger premium on Thursday.

Refining margin for diesel closed lower day on day at around $65 a barrel, based on LSEG data. The crack remained rangebound between $60 to $70 a barrel in recent sessions.

Meanwhile, cash differentials continued to fluctuate near $1 a barrel in largely muted window trade, with a wide buy-sell gap persisting.

Outside the window, diesel exports from South Korea are expected to hold firm into next month amid steady spot sale activities.

As for jet fuel, timespreads traded into slightly stronger backwardation on Thursday.

Regrade spread widened into a stronger premium, closing at $1.44 a barrel.

SINGAPORE CASH DEALS O/AS

- No deal for jet fuel or gasoil

INVENTORIES

- Oil product inventories held in Asia's key fuel trading hub Singapore declined to a three-week low, government data showed on Thursday, driven by a fall in middle and light distillate stocks. O/SING1

REFINERIES

- ExxonMobil has shut one of its catalytic reformers at its 275,000-barrel-per-day refinery in Joliet, Illinois, Wood Mackenzie said.

NEWS

- Russia and the United States are discussing the future of the international assets of sanctioned Russian oil producer Lukoil, Kremlin aide Yuri Ushakov said, according to state television.

- India's imports of Middle Eastern crude oil surged in September, returning to pre-war levels, while its refiners cut back purchases of Russian oil amid stiff competition with China, ship tracking data showed.

- Chevron is exploring the sale of some of its older oil and gas assets in the US Gulf, the company confirmed to Reuters, part of an effort to focus on high-growth developments in the region.

PRICES