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Energy

Asia Distillates-Gasoil cracks see biggest weekly drop in 10 weeks

    SINGAPORE, Aug 7 (Reuters) - Asian refining margins for 10 ppm gasoil dropped on Friday,
recording their biggest weekly decline in 2-1/2 months, as the region is awash with supplies due
to higher exports from India and China amid limited arbitrage opportunities.
    Refining margins, also known as cracks, for 10 ppm gasoil slipped 42 cents to
$5.80 a barrel over Dubai crude during Asian trading hours on Friday.
    Cracks have fallen 15.5% this week, the steepest weekly decline since May 29, Refinitiv
Eikon data showed.
    Renewed lockdown measures in several countries in the wake of a resurgence in coronavirus
infections is impairing use of the industrial and transportation fuel that found pockets of
demand over the last two months as some governments relaxed virus-led restrictions.
    China's gasoil exports this month are expected to be around 1.5 million tonnes, compared
with 1.25 million tonnes in July, Refinitiv oil research assessments showed.
    Meanwhile, August gasoil exports from India are forecast to reach up to 2.5 million tonnes,
according to the assessments. This compares with about 2.2 million tonnes of gasoil the country
exported last month.
    The exchange of futures for swaps (EFS), which determines the gasoil price spread between
Singapore and Northwest Europe, traded around minus $11 per tonne on Friday,
typically making it unworkable for arbitrage shipments.
    Arbitrage is usually profitable when the EFS trades at about minus $15 a tonne or below,
though it depends on other factors such as freight rates as well, according to traders.
    Cash premiums for gasoil with 10 ppm sulphur content GO10-SIN-DIF slipped to 4 cents a
barrel to Singapore quotes on Friday, down from 11 cents a day earlier.
    
    ARA STOCKS
    - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA dipped 2.2% to 2.5 million tonnes in the week to Aug. 6, data from
Dutch consultancy Insights Global showed.
    - The data showed ARA jet fuel inventories STK-JET-ARA rose 1.5% to 951,000 tonnes.
    
    SINGAPORE CASH DEALS
    - No gasoil deals, no jet fuel trades
    
    OTHER NEWS
    - China's crude imports in July surged 25% from a year earlier, as massive orders made while
prices collapsed in April arrived and as some shipments delayed at ports in June finally cleared
customs.
    
    
    ASSESSMENTS
 MID-DISTILLATES                                                                          
 CASH ($/T)               ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                  48.19    -0.34      -0.70       48.53  GO-SIN
 GO 0.5 Diff                        -1.45     0.03      -2.03       -1.48  GO-SIN-DIF
 Spot Gas Oil 0.25%                 48.44    -0.64      -1.30       49.08  GO25-SIN
 GO 0.25 Diff                       -1.20    -0.27      29.03       -0.93  GO25-SIN-DIF
 Spot Gas Oil 0.05%                 48.58    -0.54      -1.10       49.12  GO005-SIN
 GO 0.05 Diff                       -1.06    -0.17      19.10       -0.89  GO005-SIN-DIF
 Spot Gas Oil 0.001%                49.68    -0.44      -0.88       50.12  GO10-SIN
 GO 0.001 Diff                       0.04    -0.07     -63.64        0.11  GO10-SIN-DIF
 Spot Jet/Kero                      43.66    -0.45      -1.02       44.11  JET-SIN
 Jet/Kero Diff                      -0.61    -0.07      12.96       -0.54  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 Vinay Dwivedi)
  
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