May 21, 2020 / 10:46 AM / 9 days ago

Asia Distillates-Gasoil cash differentials rise to highest since March-end

    SINGAPORE, May 21 (Reuters) - Asia's cash discounts for gasoil narrowed for a sixth
consecutive session on Thursday amid firmer buying interests in the physical market,
while Singapore middle distillate stocks hit a two-week low.
    Cash discounts for 10 ppm gasoil GO10-SIN-DIF were at 77 cents per barrel to
Singapore quotes on Thursday, the smallest discounts since end-March. They were at a
discount of 84 cents per barrel on Wednesday.
    Refining margins or cracks for gasoil with 10 ppm sulphur content
rose to $5.58 a barrel over Dubai crude during Asian trading hours, 4 cents higher from
Wednesday.
    Meanwhile, jet fuel cracks in Singapore edged higher to $1.73 a barrel
over Dubai crude on Thursday, up from $1.54 a day earlier.
    European jet profit margins rose to minus 35 cents on Wednesday, the highest in
three weeks, although imports to the region in May touched a one-year peak. A gradual
increase in the number of flights in the region also supported the margins.

    Cash discounts for jet fuel JET-SIN-DIF widened by 6 cents to $2.61 a barrel to
Singapore quotes on Thursday as the front-month spread widened its contango structure.
    
    SINGAPORE INVENTORIES
    - Singapore onshore middle distillate stocks slipped 0.2% to 14.1 million barrels
in the week ended May 20, Enterprise Singapore data showed.
    - Weekly middle distillate inventories have averaged at 12.3 million barrels so far
in 2020, compared with 11.1 million barrels in 2019, Reuters calculations showed.
    - Overall, onshore middle distillate inventories were 19.5% higher year-on-year.
    
    EIA INVENTORIES
    - U.S. crude oil stockpiles fell last week, helping ease concerns about overflowing
oil supply, though gasoline and distillate inventories both rose as refiners increased
processing rates, the Energy Information Administration said on Wednesday.
    - Distillate stockpiles, which include diesel and heating oil, rose by 3.8 million
barrels in the week to 158.8 million barrels, the highest since March 2017, the EIA
data showed.
    
    SINGAPORE CASH DEALS
    - No jet fuel trade, no gasoil deals
    
    OTHER NEWS
    - Vitol returned to Myanmar as a fuel supplier in April for the first time in
months after Hin Leong Trading Pte Ltd left the market, three sources with knowledge of
the matter said.
    - Oil rose on Thursday to its highest since March, supported by lower U.S. crude
inventories, OPEC-led supply cuts and recovering demand as governments ease
restrictions on people's movements imposed due to the coronavirus crisis.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                       
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               37.29     1.29       3.58       36.00  GO-SIN
 GO 0.5 Diff                     -4.11     0.00       0.00       -4.11  GO-SIN-DIF
 Spot Gas Oil 0.25%              38.24     1.47       4.00       36.77  GO25-SIN
 GO 0.25 Diff                    -3.16     0.19      -5.67       -3.35  GO25-SIN-DIF
 Spot Gas Oil 0.05%              38.59     1.61       4.35       36.98  GO005-SIN
 GO 0.05 Diff                    -2.81     0.32     -10.22       -3.13  GO005-SIN-DIF
 Spot Gas Oil 0.001%             40.63     1.36       3.46       39.27  GO10-SIN
 GO 0.001 Diff                   -0.77     0.07      -8.33       -0.84  GO10-SIN-DIF
 Spot Jet/Kero                   34.83     1.37       4.09       33.46  JET-SIN
 Jet/Kero Diff                   -2.61    -0.06       2.35       -2.55  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 Rashmi Aich)
  
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