July 7, 2020 / 10:55 AM / a month ago

Asia Distillates-Gasoil cracks drop on concerns over demand recovery

    SINGAPORE, July 7 (Reuters) - Asian refining margins for 10 ppm gasoil slipped on Tuesday
despite weaker raw material crude prices as traders expect refiners to add fresh supplies to the
market, while concerns about demand due to a resurgence of coronavirus cases in some countries
lingered.
    Refining margins, also known as cracks, for gasoil with 10-ppm sulphur content
fell 30 cents to $6.69 a barrel over Dubai crude during Asian trading hours.
    A resurgence of daily cases in markets such as China and South Korea is fuelling worries
about near-term demand as reimposed lockdowns or containment measures would be detrimental for
market recovery, market watchers said.
    Cash premiums for 10-ppm gasoil GO10-SIN-DIF dropped to 59 cents a barrel to Singapore
quotes on Tuesday, compared with 62 cents per barrel a day earlier.
    Meanwhile, cash differentials for jet fuel in Singapore JET-SIN-DIF were at a discount of
42 cents a barrel to Singapore quotes on Tuesday, compared with a discount of 44 cents per
barrel on Monday.
    The prompt-month time spread for the aviation fuel in Singapore remained in a
contango structure to trade a discount of 70 cents a barrel on Tuesday, Refinitiv Eikon data
showed.
    Jet fuel cracks rose 15 cents to $1.94 a barrel over Dubai crude on Tuesday.
    
    SINGAPORE CASH DEALS
    - Two gasoil deals, no jet fuel trades
    
    OTHER NEWS
    - Malaysia's flagship budget carrier AirAsia Group Bhd expects its 2020 capacity
to be just 45%-60% of last year's levels due to the coronavirus outbreak and to fill 70-75% of
seats this year compared with the usual 85%.
    - Crude oil prices fell on Tuesday amid concerns that a surge in new coronavirus cases,
especially in the United States, will hamper any recovery in fuel demand.

    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               48.16    -1.05      -2.13       49.21  GO-SIN
 GO 0.5 Diff                     -0.84    -0.01       1.20       -0.83  GO-SIN-DIF
 Spot Gas Oil 0.25%              48.80    -1.05      -2.11       49.85  GO25-SIN
 GO 0.25 Diff                    -0.20    -0.01       5.26       -0.19  GO25-SIN-DIF
 Spot Gas Oil 0.05%              49.49    -1.05      -2.08       50.54  GO005-SIN
 GO 0.05 Diff                     0.49    -0.01      -2.00        0.50  GO005-SIN-DIF
 Spot Gas Oil 0.001%             49.59    -1.07      -2.11       50.66  GO10-SIN
 GO 0.001 Diff                    0.59    -0.03      -4.84        0.62  GO10-SIN-DIF
 Spot Jet/Kero                   43.13    -0.54      -1.24       43.67  JET-SIN
 Jet/Kero Diff                   -0.42     0.02      -4.55       -0.44  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 Amy Caren Daniel)
  
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