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Is the Asian Diesel Market Turning Around? Window Trading Recovers, But Refining Margins Remain Under Pressure. ⑴ The Asian middle distillate market was active during the trading window, with multiple transactions occurring in the first trading session of the week. ⑵ While market structure, spot spreads, and refinery spot sales activity remained largely unchanged, market sentiment has improved. ⑶ Some diesel cargoes remain under discussion at slight discounts for late August loading. ⑷ Refining margins for 10ppm sulfur diesel fell for the third consecutive trading day, closing at approximately $18.6 per barrel. ⑸ The trading window was primarily focused on 500ppm sulfur diesel, but a small 10ppm sulfur diesel transaction slightly dragged down cash premiums, currently assessed at $1.56 per barrel. ⑹ Regarding jet fuel, traders report that July exports from China, South Korea, and Southeast Asia may approach a five-year high, but analysts anticipate a slightly volatile trend in August. ⑺ Despite strong demand, jet fuel shipments from Northeast Asia to the US West Coast have remained low since July, with Kpler vessel tracking data indicating only approximately 150,000 tons shipped to the region in the second half of the month. ⑻ The crack spread widened slightly again, to a discount of approximately $2.65 per barrel. ⑼ Data from the US Energy Information Administration showed that US crude oil inventories rose sharply last week, while gasoline and distillate inventories fell. ⑽ Official data showed that Singapore's middle distillate inventories rebounded to over 8 million barrels from the previous week's level, driven by a decline in net exports on a weekly basis. ⑾ The US Treasury imposed new sanctions on Iranian-linked entities and individuals, while Chevron received a limited license to operate in Venezuela. ⑿ US jet fuel demand rose by 411,000 barrels per day in the week ending July 25, reaching nearly 2.1 million barrels per day, the highest level since December 2017.