February 10, 2020 / 10:49 AM / 18 days ago

Asia Distillates-Gasoil cash premiums inch up, prompt-month spread narrows

    SINGAPORE, Feb 10 (Reuters) - Asia's cash premiums for 10 ppm gasoil climbed on Monday,
helped by active buying interest for physical cargoes, while the prompt-month spread narrowed
its backwardated structure.
    Cash premiums for gasoil with 10 ppm sulphur content GO10-SIN-DIF rose by a cent to 62
cents per barrel to Singapore quotes on Monday.
    The February/March time spread for the benchmark gasoil grade in Singapore
narrowed on Monday to trade at a premium of 65 cents a barrel, 5 cents lower from Friday.
    Refining margins or crack spreads for 10 ppm gasoil eased to $12.21 per barrel
over Dubai crude during Asian trading hours on Monday, down from $12.82 a barrel on Friday.
    The gasoil market in the region remains under pressure as a virus epidemic, which originated
from China, has hurt demand for the industrial and transportation fuel with many factories
having suspended operations due to health restrictions.
    Some workers, however, began trickling back to offices and factories around China on Monday
as the government eased some restrictions on working in the wake of the coronavirus epidemic
that has now killed more than 900 people, mostly on the mainland.
    Meanwhile, crack spreads for jet fuel dipped to $10.11 per barrel over Dubai
crude on Monday, 51 cents lower compared with Friday. 
    Cash differentials for jet fuel JET-SIN-DIF flipped back to a narrow premium of 5 cents a
barrel to Singapore quotes on Monday, compared with a discount of 13 cents a barrel on Friday.
    - PetroChina, China's second state refiner, is reducing refinery crude throughput by about
320,000 barrels per day this month versus its original plan as a spreading coronavirus hits fuel
demand, a senior company official told Reuters on Monday.
    - PetroChina started the production cuts at the beginning of the month, but deepened the
cuts from Monday, said the official with direct knowledge of the matter. The February cut is
equivalent to about 10% of the refiner's average production rate at around 3.32 million bpd.
    - Three gasoil trades, one jet fuel deal
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    - Oil prices edged down on Monday but held recent ranges as traders assessed China's oil
demand following the coronavirus outbreak and awaited a decision by major producers to cut
output further to balance markets.
    - French oil major Total rejected a force majeure notice from a liquefied natural gas (LNG)
buyer in China, the first global energy supplier to push back publicly against a firm trying to
back out of a contract amid the coronavirus outbreak.
 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                 63.81    -1.73      -2.64       65.54  GO-SIN
 GO 0.5 Diff                       -1.74    -0.02       1.16       -1.72  GO-SIN-DIF
 Spot Gas Oil 0.25%                64.39    -1.73      -2.62       66.12  GO25-SIN
 GO 0.25 Diff                      -1.16    -0.02       1.75       -1.14  GO25-SIN-DIF
 Spot Gas Oil 0.05%                65.07    -1.79      -2.68       66.86  GO005-SIN
 GO 0.05 Diff                      -0.48    -0.08      20.00       -0.40  GO005-SIN-DIF
 Spot Gas Oil 0.001%               66.17    -1.69      -2.49       67.86  GO10-SIN
 GO 0.001 Diff                      0.62     0.01       1.64        0.61  GO10-SIN-DIF
 Spot Jet/Kero                     63.03    -1.06      -1.65       64.09  JET-SIN
 Jet/Kero Diff                      0.05     0.18    -138.46       -0.13  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 Louise Heavens)
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