Flows of ultra low sulfur diesel and higher sulfur gasoil to Europe from East of Suez producers are thinning as the arbitrage looked firmly shut amid a strengthening Asian market, sources said.

The bulk of Libya's oil remains blockaded as the North African country remains embroiled in a civil conflict. But talks that could potentially restart two key Western oil fields are underway, sources close to the matter said Friday.

A combination of heightened geopolitical and economic tensions involving China halted the long run up in oil prices Friday, pushing front-month futures 5% lower before they rebounded some.

Northwest European jet swap cracks have hit a seven-week high as positive sentiment buoys the paper market, while refinery run cuts bite.

Cosmo Energy Holdings said Thursday it sees Japan's gasoline and gasoil demand bottoming out by October-December and recovering to pre-coronavirus levels by January-March 2021, but expects the country's jet fuel demand to see a drop of 20-30% year on year in the first quarter of next year.

Mediterranean refineries are unlikely to ramp up their run rates in the short term as refinery margins remain poor despite an uptick in demand for diesel and gasoline in Europe as countries ease restrictions introduced to combat the COVID-19 spread, according to traders.

In a bid to increase the use of LNG as a fuel in both maritime and road transport, a feasibility study for a small-scale LNG terminal in Gdansk has been completed with the next step being a decision on whether to precede with the project, Lotos Group said.