July 15, 2020 / 10:29 AM / a month ago

Asia Distillates-Gasoil cracks dip to 2-week low as virus resurgence hits demand

    SINGAPORE, July 15 (Reuters) - Asian refining margins for 10
ppm gasoil slipped to a two-week low on Wednesday, weighed down
by concerns over subdued demand in the wake of renewed
coronavirus lockdowns, while the region remains awash with
supplies.
    Refining margins, also known as cracks, for gasoil with
10-ppm sulphur content dropped 35 cents to $6.24 a
barrel over Dubai crude during Asian trading hours, the lowest
since the end of June.
    Gasoil demand would come under pressure as industrial
activity takes a hit with a second wave of COVID-19 infections
in many places, a Singapore-based trader said.
    "But I think the pick-up in demand, if any, would still be
faster than jet fuel, all other things staying equal," she
added.
    Jet fuel cracks, which have been the hardest hit among oil
products as global airlines struggle to survive their worst
downturn, are currently at their weakest seasonal levels for
this time of the year.
    Refining margins for the aviation fuel in Singapore
 were down 21 cents at $1.20 a barrel over Dubai
crude on Wednesday.
    Cash discounts for jet fuel JET-SIN-DIF widened by a cent
to 30 cents a barrel to Singapore quotes on Wednesday, while
cash premiums for 10-ppm gasoil GO10-SIN-DIF dipped to 71
cents a barrel to Singapore quotes, down 2 cents from a day
earlier.
    
    INVENTORIES
    - Middle-distillate inventories in the Fujairah Oil Industry
Zone climbed 11.8% to 4.3 million barrels in the week ended July
13, data via S&P Global Platts showed.
    - The weekly stocks in Fujairah have averaged 3.9 million
barrels so far in 2020, compared with a weekly average of 2.4
million barrels in 2019, Reuters calculations showed.
    - Meanwhile, U.S. distillate fuel inventories rose by 3
million barrels, compared with expectations for a gain of 1.5
million barrels, data from industry group the American Petroleum
Institute (API) showed on Tuesday.
    
    SINGAPORE CASH DEALS
    - One gasoil deal, no jet fuel trades
    
    OTHER NEWS
    - Taiwan's Formosa Petrochemical Corp has shut a residue
desulphuriser (RDS) unit at its 540,000 barrels-per-day (bpd)
Mailiao refinery after it was hit by a fire early on Wednesday,
three sources close to the matter said.

    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                48.84     0.99       2.07       47.85  GO-SIN
 GO 0.5 Diff                      -0.82    -0.02       2.50       -0.80  GO-SIN-DIF
 Spot Gas Oil 0.25%               49.48     0.99       2.04       48.49  GO25-SIN
 GO 0.25 Diff                     -0.18    -0.02      12.50       -0.16  GO25-SIN-DIF
 Spot Gas Oil 0.05%               50.17     0.99       2.01       49.18  GO005-SIN
 GO 0.05 Diff                      0.51    -0.02      -3.77        0.53  GO005-SIN-DIF
 Spot Gas Oil 0.001%              50.36     0.98       1.98       49.38  GO10-SIN
 GO 0.001 Diff                     0.71    -0.02      -2.74        0.73  GO10-SIN-DIF
 Spot Jet/Kero                    43.92     1.18       2.76       42.74  JET-SIN
 Jet/Kero Diff                    -0.30    -0.01       3.45       -0.29  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 Emelia
Sithole-Matarise)
  
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