November 22, 2019 / 10:27 AM / 22 days ago

Asia Distillates-Gasoil cash premium dips; dives 82% in one month

    SINGAPORE, Nov 22 (Reuters) - Asia's cash premiums for 10 ppm gasoil inched lower further on
Friday, weighed down by plentiful supplies and sloppy demand, while refining margins for the
industrial fuel posted their biggest weekly decline in nearly seven months.
    Cash premiums for gasoil with 10 ppm sulphur content GO10-SIN-DIF were at 19 cents a
barrel to Singapore quotes, their lowest level in nine weeks. The premiums were at 20 cents a
barrel on Thursday.
    The gasoil cash differentials have slumped 82.7% over the last one month as the region got
awash with supplies.
    Singapore onshore inventories for middle distillates jumped to a seven-week high of 11.6
million barrels in the week to Wednesday, Enterprise Singapore data showed on Thursday. This
came after middle-distillate stocks in the Fujairah Oil Industry Zone rose 8.8% from a week
earlier to 3.5 million barrels in the week to Nov. 18. 
    Gasoil exports from China and India have increased due to weaker consumption in their
respective domestic markets, while incremental demand for marine gasoil (MGO) ahead of a switch
to cleaner marine fuels, as earlier expected, has not arrived yet, trade sources said. 
    The new International Maritime Organization (IMO) rules prohibit ships from using fuels
containing more than 0.5% sulphur, compared with 3.5% through the end of December, unless they
are equipped with exhaust-cleaning "scrubbers".
    Refining margins or cracks for 10 ppm gasoil rose by 34 cents to $13.97 a
barrel over Dubai crude during Asian trading hours on Friday, partly helped by weaker raw
material crude prices.
    Cracks for the benchmark gasoil grade in Singapore, however, have dropped 10.6% this week in
their biggest weekly decline since the week ended April 26, Refinitiv Eikon data showed.
    Meanwhile, refining margins for jet fuel edged lower by a cent to $13.72 per
barrel over Dubai crude on Friday.
    Cash differentials for jet fuel JET-SIN-DIF remained unchanged at a discount of 58 cents
per barrel to Singapore quotes.

    - Gasoil stocks independently held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA dropped 2.6% to 2.4 million tonnes in the week to Nov. 21, data from
Dutch consultancy Insights Global showed.
    - Gasoil demand in inland markets rose over the past week because of low barge freight rates
and colder weather, Insights Global's Lars van Wageningen said.
    - In an unusual step, one tanker exported gasoil from ARA to the United States and another
to Brazil over the past week, van Wageningen added.
    - ARA jet fuel inventories STK-JET-ARA fell 1% to 726,000 tonnes, the data showed.
    - Compared with a year ago, jet fuel stocks were 12.6% higher, while gasoil inventories were
up about 15%.

    - No gasoil trades, no jet fuel deals.
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    - Oil prices pulled back from their highest levels in nearly two months on Friday amid
continued overtainty over whether the United States and China will be able to reach a partial
trade deal that would lift some pressure on the global economy.
    - OPEC and its allies are likely to extend existing oil output cuts when they meet next
month until mid-2020, with non-OPEC oil producer Russia supporting Saudi Arabia's push for
stable oil prices amid the listing of state oil giant Saudi Aramco.

 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                72.86     2.00       2.82       70.86  GO-SIN
 GO 0.5 Diff                      -3.27     0.02      -0.61       -3.29  GO-SIN-DIF
 Spot Gas Oil 0.25%               73.15     2.00       2.81       71.15  GO25-SIN
 GO 0.25 Diff                     -2.98     0.02      -0.67       -3.00  GO25-SIN-DIF
 Spot Gas Oil 0.05%               75.77     1.99       2.70       73.78  GO005-SIN
 GO 0.05 Diff                     -0.36     0.01      -2.70       -0.37  GO005-SIN-DIF
 Spot Gas Oil 0.001%              76.32     1.98       2.66       74.34  GO10-SIN
 GO 0.001 Diff                     0.19    -0.01      -5.00        0.20  GO10-SIN-DIF
 Spot Jet/Kero                    75.27     1.61       2.19       73.66  JET-SIN
 Jet/Kero Diff                    -0.58     0.00       0.00       -0.58  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 David Evans)
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