Asia's Middle Distillates Markets See Price Decline

Asia's middle distillates markets saw a consistent price downtrend late week, driven by weakness in futures prices. Regrade rebounded to almost a one-month high, while the backwardated swap price structure narrowed. Refining margins for the fuel closed the week 10% lower, and jet fuel prices were slightly driven by an opened arbitrage window between Asia and U.S. West Coast. Inventory of gasoil in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose 3% amid very weak inland demand.