July 3, 2020 / 11:25 AM / a month ago

Asia Distillates-Gasoil cracks mark weekly gain as demand improves

    SINGAPORE, July 3 (Reuters) - Asian refining margins for 10 ppm gasoil inched lower
on Friday, but marked a weekly gain of nearly 2% as demand for the industrial and
transport fuel gradually picks up pace with countries easing coronavirus-related lockdown
measures.
    Refining margins, also known as cracks, for gasoil with 10-ppm sulphur content
 dipped 2 cents to $6.66 a barrel over Dubai crude during Asian trading
hours on Friday.
    The gasoil cracks have gained 69.9% in the last one month as industrial activity
partly recovered from the worst of the COVID-19 pandemic, market watchers said.
    "Taking China as an example, the construction sector looks set to benefit as the
government pushes through an infrastructure-based stimulus plan to reinvigorate the
economy," said Peter Lee, senior oil and gas analyst at Fitch Solutions.
    "Agri activities should also benefit, as labourers return to workplaces and resume
routine work."
    Meanwhile, gasoil loadings out of Asia in June were seen at a five-year low of 6.75
million tonnes, down from 9.12 million tonnes in May, mainly due to improving demand from
within Asia, according to Refinitiv oil Research assessments.
    India's gasoil exports in June were at a one-year-low of 1.81 million tonnes, while
China's exports for the month closed at a five-year low of around 823,000 tonnes, the
Refinitiv assessments showed.
    Cash premiums for 10-ppm gasoil GO10-SIN-DIF dropped to 67 cents a barrel to
Singapore quotes on Friday, from 84 cents per barrel a day earlier.
    
    ARA STOCKS
    - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining
and storage hub STK-GO-ARA fell 5.5% to 2.6 million tonnes in the week to July 2, data
from Dutch consultancy Insights Global showed.
    - ARA jet fuel inventories STK-JET-ARA rose 2.6% to 944,000 tonnes, the data
showed.
    - Compared with a year earlier, jet fuel stocks were 16.8% higher, while gasoil
inventories were down 10.9%.
    
    SINGAPORE CASH DEALS
    - Two gasoil deals, no jet fuel trades

    ASSESSMENTS
 MID-DISTILLATES                                                                         
 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                 48.28     0.01       0.02       48.27  GO-SIN
 GO 0.5 Diff                       -0.80    -0.04       5.26       -0.76  GO-SIN-DIF
 Spot Gas Oil 0.25%                48.92     0.01       0.02       48.91  GO25-SIN
 GO 0.25 Diff                      -0.16    -0.04      33.33       -0.12  GO25-SIN-DIF
 Spot Gas Oil 0.05%                49.71    -0.09      -0.18       49.80  GO005-SIN
 GO 0.05 Diff                       0.63    -0.14     -18.18        0.77  GO005-SIN-DIF
 Spot Gas Oil 0.001%               49.75    -0.13      -0.26       49.88  GO10-SIN
 GO 0.001 Diff                      0.67    -0.17     -20.24        0.84  GO10-SIN-DIF
 Spot Jet/Kero                     42.80     0.43       1.01       42.37  JET-SIN
 Jet/Kero Diff                     -0.55     0.12     -17.91       -0.67  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 Susan Fenton)
  
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