Fresh government data showed Japanese kerosene stockpiles rose almost 24 percent to 4.58 million kilolitres as of the end of September from a month earlier, dashing hopes that Japan would seek prompt jet-kerosene imports for winter. In the past years, Japanese jet-kerosene import demand helped bolster market sentiment before and during winter months.
Brokers pegged November gas oil at $69.85 a barrel, down 50 cents from Friday. Gas oil's November/December contango widened 40 cents to $1.20 a barrel in the face of sluggish demand.
Indonesia, Asia's top distillate buyer, sought via a monthly tender a lower volume of gas oil and jet fuel for December. Pertamina is seeking 600,000 barrels of gas oil, halve the volumes bought in a November tender. It also requested 360,000 barrels of jet fuel, a cargo less than November purchases.