Gas oil paper was quoted at $15.25/$15.45 per barrel for November, compared to the $15.45/$15.55 levels last talked on Monday.

"It is a bit lower, but it's no great shakes, it's very quiet this morning," said a broker.

"Overnight crude is having an impact on prices, but I don't see a lot else moving the swaps prices," he said.

Brokers said that the Singapore physical gas oil market was seeing more equal spread of buyers and sellers, compared to a one-sided market previously.

This was keeping the market relatively steady and with limited volatility expected, paper trades were limited, they said.

December gas oil swaps was talked at $15.60/$15.85, down from Monday's last quoted prices of $15.90/$16.00.

The Singapore physical market on Monday saw gas oil cargoes offered at $15.40, compared to offers at $15.60 late lastweek.

Regrade, or the premium of jet kerosene to gas oil was slightly firmer, with November talked at $2.50/$2.80 per barrel, compared to $2.40/$2.60 quoted late on Monday.

Traders said the wider spread was due to a stronger jet/kerosene physical market, relative to gas oil.

Winter demand from Japan for kerosene for heating was starting to emerge, with Japanese refiner Cosmo Oil taking one million barrels for delivery between November and January.

This is the first term purchase for winter from North Asia, traders said.

The purchase, and forecast of a cold winter bolstered sentiment.

Fuel oil swaps levels were also weaker on Tuesday morning, on the crude falls, despite a firm physical market.

November swaps was quoted by brokers at $75/$76 per tonne, compared to late Monday's quotes of $77/78.

December was at $74.25/$75.50, down more than $1.00 from Monday's prices.

Strong support was seen in the Singapore physical fuel oil market, with a local trader taking two 20,000 tonne cargoes from aEuropean major at $82.00 and $83.00.

Naphtha paper was lower by 10 cents per barrel from Monday, with November talked at $14.90/$15.00, and December at $14.80/$14.90.