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Energy

Asia Distillates-Gasoil cracks dip amid concerns of increasing supplies

    SINGAPORE, Oct 2 (Reuters) - Asian refining margins for 10 ppm gasoil slipped on Friday
despite weaker feedstock crude prices, weighed down by lacklustre demand amid surging COVID-19
cases in several markets and expectations for higher Chinese exports for the remainder of this
year.
    Refining profit margins, also known as cracks, for 10 ppm gasoil eased to
$3.90 a barrel over Dubai crude during Asian trade on Friday, down from $3.93 per barrel a day
earlier.
    China is expected to increase its gasoil exports for the rest of 2020 as refiners would try
to exhaust their export quotas for the year, adding more to the available supplies in the
region, trade sources said.
    China's gasoil exports in September stood at a five-month high of 1.72 million tonnes, up
from 1.09 million tonnes in August, Refinitiv oil research assessments showed.
    "Diesel cracks are already reeling from the massive oversupply in the market. Any further
rise in exports from China, South Korea and India will certainly weigh further on regional
diesel cracks," said Serena Huang, Asia lead analyst at oil analytics firm Vortexa.
    Cash differentials for gasoil with 10 ppm sulphur content GO10-SIN-DIF were at a discount
of 56 cents a barrel to Singapore quotes on Friday, compared with a 58-cent discount on
Thursday.
    
    ARA STOCKS
    - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA slipped 0.7% to 2.8 million tonnes in the week to Oct. 1, data from
Dutch consultancy Insights Global showed.
    - The data showed ARA jet fuel inventories STK-JET-ARA rose 0.7% to 945,000 tonnes.
    - Compared with a year earlier, ARA gasoil inventories were up 0.5%, while jet fuel stocks
were about 48% higher.
    
    TENDERS
    - India's Mangalore Refinery and Petrochemicals Ltd (MRPL) was offering 65,000 tonnes of
10ppm gasoil for Nov. 1-3 loading from the port of New Mangalore. The tender closes on Oct. 8
and has a same-day validity.
    
    SINGAPORE CASH DEALS
    - Two jet fuel trades, no gasoil deals
    - Vitol bought two separate cargoes of 150,000 barrels of jet fuel each from CAO for Oct.
17-21 loading, at a discount of 80 cents a barrel to Singapore quotes.
    
    OTHER NEWS
    - Oil prices extended losses to about 3% on Friday after U.S. President Donald Trump said he
has tested positive for COVID-19, while agreement on a U.S. stimulus package eluded negotiators
amid ongoing worries about demand.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                       
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               40.64    -2.32      -5.40       42.96  GO-SIN
 GO 0.5 Diff                     -1.93     0.02      -1.03       -1.95  GO-SIN-DIF
 Spot Gas Oil 0.25%              41.04    -2.32      -5.35       43.36  GO25-SIN
 GO 0.25 Diff                    -1.53     0.02      -1.29       -1.55  GO25-SIN-DIF
 Spot Gas Oil 0.05%              41.46    -2.32      -5.30       43.78  GO005-SIN
 GO 0.05 Diff                    -1.11     0.02      -1.77       -1.13  GO005-SIN-DIF
 Spot Gas Oil 0.001%             42.01    -2.32      -5.23       44.33  GO10-SIN
 GO 0.001 Diff                   -0.56     0.02      -3.45       -0.58  GO10-SIN-DIF
 Spot Jet/Kero                   39.14    -2.52      -6.05       41.66  JET-SIN
 Jet/Kero Diff                   -0.83     0.04      -4.60       -0.87  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 Krishna Chandra Eluri)
  
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