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Energy

Asia Distillates-Gasoil cash differentials dip, time spread narrows

    SINGAPORE, Oct 5 (Reuters) - Asia's cash differentials for 10 ppm gasoil slipped on Monday,
hurt by weaker buying interest for physical cargoes, but the prompt-month spread for the
industrial fuel narrowed its contango structure.
    Cash differentials for gasoil with 10 ppm sulphur content GO10-SIN-DIF were at a discount
of 61 cents a barrel to Singapore quotes, compared with a discount of 56 cents a barrel on
Friday.
    The October/November time spread for 10 ppm gasoil in Singapore traded at a 
discount of 50 cents per barrel, as against minus 60 cents a barrel at the end of last week.
    Refining profit margins for 10 ppm gasoil dropped 13 cents to $3.77 a barrel
over Dubai crude during Asian trading hours as raw material crude prices firmed. 
    
    WINTER KEROSENE DEMAND COLD COMFORT FOR JET FUEL MARKET
    - Asian refineries' profit margins for jet fuel have hit their highest levels in two months
as demand for heating oil kerosene picked up before North Asia's winter, but analysts do not
expect margins to fully recover until the coronavirus-hit aviation sector is back to normal.

    - Japan and South Korea have started stockpiling kerosene ahead of winter, trade sources
said, with some weather models pointing to colder-than-normal temperatures in Japan at the turn
of the year. 
    - But with coronavirus travel curbs likely to continue to ground flights for months and
analysts not expecting a meaningful rebound in demand until the second half of 2021, profits are
likely to remain a fraction of long-term averages for now.
    
    SINGAPORE CASH DEALS
    - One jet fuel trade, no gasoil deals
    - Total sold 100,000 barrels of jet fuel to Vitol for Oct. 20-24 loading, at a discount of
50 cents a barrel to Singapore quotes.
    
    OTHER NEWS
    - Oil prices rose on Monday, lifted by comments from doctors for U.S. President Donald Trump
suggesting he could be discharged from hospital as soon as Monday, just a few days after his
positive coronavirus test sparked widespread alarm.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                       
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               41.43     0.79       1.94       40.64  GO-SIN
 GO 0.5 Diff                     -1.90     0.03      -1.55       -1.93  GO-SIN-DIF
 Spot Gas Oil 0.25%              41.83     0.79       1.92       41.04  GO25-SIN
 GO 0.25 Diff                    -1.50     0.03      -1.96       -1.53  GO25-SIN-DIF
 Spot Gas Oil 0.05%              42.25     0.79       1.91       41.46  GO005-SIN
 GO 0.05 Diff                    -1.08     0.03      -2.70       -1.11  GO005-SIN-DIF
 Spot Gas Oil 0.001%             42.71     0.70       1.67       42.01  GO10-SIN
 GO 0.001 Diff                   -0.61    -0.05       8.93       -0.56  GO10-SIN-DIF
 Spot Jet/Kero                   40.19     1.05       2.68       39.14  JET-SIN
 Jet/Kero Diff                   -0.69     0.14     -16.87       -0.83  JET-SIN-DIF
                                                                                       
 For a list of derivatives prices, including margins, please double                    
 click the RICs below.                                                  
 Brent M1                                                                              
 Gasoil M1                                                                             
 Gasoil M1/M2                                                                          
 Gasoil M2                                                                             
 Regrade M1                                                                            
 Regrade M2                                                                            
 Jet M1                                                                                
 Jet M1/M2                                                                             
 Jet M2                                                                                
 Gasoil 500ppm-Dubai                                                                   
 Cracks M1                                                              
 Gasoil 500ppm-Dubai                                                                   
 Cracks M2                                                              
 Jet Cracks M1                                                                         
 Jet Cracks M2                                                                         
 East-West M1                                                                          
 East-West M2                                                                          
 LGO M1                                                                                
 LGO M1/M2                                                                             
 LGO M2                                                                                
 Crack LGO-Brent M1                                                                    
 Crack LGO-Brent M2                                                                    
 
 (Reporting by Koustav Samanta; Editing by Subhranshu Sahu)
  
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