Spot product prices rose across the board in die week to July 12,due largely to short-term improvements in fundamentals for most products.Gasoil differentials came under pressure from tepid prompt demand and rising inventories,but margins were buoyed,posting their biggest gains in four weeks,by expectations of falling diesel export volumes from China in the coming mondis.Singaporean stocks of middle distillates rebounded to a two-week high.Gasoil margins recendy received a boost on data which showed China's diesel exports in May were less than half of April's volume,and flows could remain subdued going forward as refinery throughput eases amid weakening refining profits,market players said.Despite the reduced volumes,exports from China likely will continue to add to the region's glut.”There is no shortage of gasoil in the market at the moment.Plus,the market is anticipating a third batch of export quotas from China(for this year),implying more products coming out of China,”a trader remarked.China's second batch of 2019 fuel export quotas in May was about 30 greater than its first batch,and the third batch is expected in Sept.or Oct.,market watchers noted.Jet fuel cracks also were elevated,driven up by firm seasonal travel demand.The market was in backwardation for the second week in a row.
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