June 8, 2020 / 10:52 AM / a month ago

Asia Distillates-Gasoil cash premiums slip for third straight session

    SINGAPORE, June 8 (Reuters) - Asia's cash premiums for 10 ppm gasoil slipped for a third
consecutive session on Monday, hurt by weaker buying interest in the physical market.
    Cash premiums for 10 ppm gasoil GO10-SIN-DIF dropped to 15 cents a barrel to Singapore
quotes, compared with 17 cents on Friday, as the physical trade window in Singapore stayed muted
with no offers or deals on Monday.
    Refining margins, also known as cracks, for gasoil with 10 ppm sulphur content
were at $4.47 per barrel over Dubai crude during Asian trading hours on Monday.
    Cracks for the benchmark gasoil grade in Singapore are currently 40% lower than levels a
couple of months ago, and 71% lower than the 2019 average of $15.49 a barrel over Dubai crude,
Refinitiv Eikon data showed.
    Bulging inventories and stronger oil prices are putting pressure on gasoil refining profits,
stifling incentives for refiners to hike production even as fuel demand recovers from the
coronavirus hammering.
    With diesel accounting for around 50% of the output of an average refinery, any weakness
hits refiners' recovery plans.
    Further easing of coronavirus restrictions is expected to support the regional gasoil market
in coming weeks, but upcoming peak monsoon in major markets such as India typically dampens
demand for the fuel, traders said.
    Meanwhile, cash discounts for jet fuel JET-SIN-DIF narrowed to 27 cents a barrel to
Singapore quotes on Monday, compared with a discount of 32 cents a barrel on Friday. 
    - No jet fuel trade, no gasoil deal
    - Oil climbed on Monday after major producers agreed to extend a deal on record output cuts
to the end of July and as China's crude imports hit an all-time high in May.
 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                 44.30     3.42       8.37       40.88  GO-SIN
 GO 0.5 Diff                       -2.23     0.06      -2.62       -2.29  GO-SIN-DIF
 Spot Gas Oil 0.25%                45.20     3.42       8.19       41.78  GO25-SIN
 GO 0.25 Diff                      -1.33     0.06      -4.32       -1.39  GO25-SIN-DIF
 Spot Gas Oil 0.05%                46.14     3.58       8.41       42.56  GO005-SIN
 GO 0.05 Diff                      -0.40     0.22     -35.48       -0.62  GO005-SIN-DIF
 Spot Gas Oil 0.001%               46.68     3.34       7.71       43.34  GO10-SIN
 GO 0.001 Diff                      0.15    -0.02     -11.76        0.17  GO10-SIN-DIF
 Spot Jet/Kero                     43.33     3.86       9.78       39.47  JET-SIN
 Jet/Kero Diff                     -0.27     0.05     -15.63       -0.32  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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