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Energy

Asia Distillates-Gasoil cash discounts narrow as excess supplies deplete

    SINGAPORE, Aug 25 (Reuters) - Asian cash discounts for 10 ppm gasoil narrowed for a third
consecutive session on Tuesday, supported by a slight uptick in buying interest for physical
cargoes, while the front-month spread for the industrial fuel trimmed its contango structure.
    Cash differentials for 10 ppm gasoil GO10-SIN-DIF were at a discount of 30 cents a barrel
to Singapore quotes on Tuesday, compared with a 37-cent discount a day earlier.
    The September/October time spread for the benchmark gasoil grade in Singapore
narrowed its contango on Tuesday by 5 cents to trade at a discount of 41 cents per barrel,
Refinitiv Eikon data showed.
    Lesser exports from key markets such as India and China have helped reduce a supply overhang
in the region, but there are still ample gasoil barrels available as refiners continue to blend
jet fuel into the gasoil pool as much as possible, trade sources said.
    Refining margins or cracks for 10 ppm gasoil climbed to $5.26 a barrel over
Dubai crude during Asian trade on Tuesday, up 7 cents from Monday.
    Meanwhile, jet fuel cracks remained in a negative territory and weakened to a
discount of 54 cents a barrel to Dubai crude on Tuesday, as against minus 37 cents in the
previous session.
    
    TENDERS
    - India's Mangalore Refinery and Petrochemicals Ltd (MRPL) has offered 65,000 tonnes of
10ppm gasoil for Sept. 15-17 loading from the port of New Mangalore.
    - The tender closes on Aug. 28 and has a same-day validity.
    
    SINGAPORE CASH DEALS
    - No gasoil deals, no jet fuel trades
    
    OTHER NEWS
    - Crude oil prices were mixed on Tuesday as traders weighed massive production cuts in the
U.S. Gulf Coast from Tropical Storms Marco and Laura against rising coronavirus cases in Asia
and Europe.
    -  The oil price is holding steady close to $45 a barrel, but prices further forward and in
the physical market are showing new signs of weakness mainly due to a fall in demand from China
after the country's buying binge earlier in the year.
    
    ASSESSMENTS    
 MID-DISTILLATES                                                                        
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                47.73     0.72       1.53       47.01  GO-SIN
 GO 0.5 Diff                      -2.29     0.02      -0.87       -2.31  GO-SIN-DIF
 Spot Gas Oil 0.25%               47.93     0.77       1.63       47.16  GO25-SIN
 GO 0.25 Diff                     -2.09     0.07      -3.24       -2.16  GO25-SIN-DIF
 Spot Gas Oil 0.05%               48.04     0.72       1.52       47.32  GO005-SIN
 GO 0.05 Diff                     -1.98     0.02      -1.00       -2.00  GO005-SIN-DIF
 Spot Gas Oil 0.001%              49.72     0.77       1.57       48.95  GO10-SIN
 GO 0.001 Diff                    -0.30     0.07     -18.92       -0.37  GO10-SIN-DIF
 Spot Jet/Kero                    43.81     0.42       0.97       43.39  JET-SIN
 Jet/Kero Diff                    -0.43    -0.06      16.22       -0.37  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 Aditya Soni)
  
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