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[Asian Fuel Oil Retraces Gains, Diesel and Jet Fuel Trading Heats Up] ⑴ The Asian high-sulfur fuel oil market retraced some of its gains on Tuesday, after an earlier surge pushed premiums up sharply. ⑵ The premium for 380-cst high-sulfur fuel oil spot over Singapore quotes fell from the previous day, but remained above $50 per tonne. ⑶ The ultra-low sulfur fuel oil spot spread widened to above $37 per tonne, with buyers offering higher prices than the previous trading day. ⑷ Fuel oil crack spreads rose, with the ultra-low sulfur fuel oil crack spread reaching a premium of approximately $22.8 per barrel at the Asian close, and the 380-cst high-sulfur fuel oil crack spread reaching nearly $1.5 per barrel. ⑸ No high-sulfur or ultra-low sulfur fuel oil deals were reportedly concluded in the Singapore trading window. ⑹ Trading in the diesel market became more active, with refineries increasing sales of October cargoes. As inter-month spreads strengthened further, negotiated premiums also increased. (7) The East-West diesel price spread remained at a discount of over $130 per ton. (8) The diesel crack spread fell for the second consecutive trading day, dropping to around $81 per barrel, but remained above the August average. (9) The diesel spot price spread further widened slightly to around $5.8 per barrel, following the strengthening structure of the paper market, although spot trading activity weakened. (10) In the jet fuel market, spot market activity increased, with both buyers and sellers seeking to buy or sell October cargoes. (11) The jet fuel-diesel discount widened further to nearly $4 per barrel, with no jet fuel or diesel deals reportedly concluded in the trading window. (12) Naphtha prices held firm, near the highs reached in July, following the rise in crude oil prices. Escalating geopolitical tensions in the Gulf region pushed premiums sharply higher, with market participants estimating October second-half cargo prices at around $978 per ton, widening the backwardation to around $28 per ton.