EIA reported a higher-than-expected rise in US crude inventories and production.

"Distillate supply growth has been much faster than the pace of demand growth, even with IMO 2020 on the horizon," a trader said.

"Every port's rules are different. Discharging of cargoes such as coal and iron ore are still ongoing," a source said.

The prompt backwardation in the ICE low-sulfur gasoil futures narrowed sharply Tuesday, while overall sentiment felt softer amid doubts about the extent of the boost to middle distillates from the implementation of IMO 2020 on January 1.

The Shanghai and Hong Kong delivered 380 CST bunker fuel price hit fresh lows Tuesday, amid continued destocking of the high sulfur grade ahead of the International Maritime Organization's low sulfur marine fuels mandate in January.