December 26, 2019 / 10:47 AM / a month ago

Asia Distillates-Gasoil refining margins gain, cash premiums rise

    SINGAPORE, Dec 26 (Reuters) - Asian refining margins for 10 ppm gasoil climbed on Thursday,
with the market staying upbeat on firmer near-term demand as the shipping industry switches to
cleaner marine fuels next year.
    Refining margins, also known as cracks, for gasoil with 10 ppm sulphur content
rose to $15.42 per barrel over Dubai crude during Asian trading hours, up from $15.27 a barrel
on Tuesday.
    Cracks for the benchmark gasoil grade in Singapore, which have risen about 5% in the last
one month, are currently at their strongest levels for this time of the year in the last five
years, Refinitiv Eikon data showed.
    Cash premiums for 10 ppm gasoil GO10-SIN-DIF were at 75 cents per barrel over Singapore
quotes, compared with a premium of 67 cents a barrel in the last trading session on Tuesday.
    Meanwhile, cash differentials for jet fuel JET-SIN-DIF fell to a premium of 6 cents per
barrel to Singapore quotes, compared with a 13-cent premium on Tuesday.
    Jet fuel cracks were at $14.42 per barrel over Dubai crude, compared with
$14.59 per barrel on Tuesday.
    
    SINGAPORE INVENTORIES
    - Singapore onshore middle distillate stocks fell 3.4% to a six-week low of 10.5 million
barrels in the week ended Dec. 25, Enterprise Singapore data showed.
    - Weekly middle distillate inventories have averaged 11.1 million barrels so far this year,
having averaged 9.6 million barrels a week in 2018, Reuters calculations showed.
    - Overall, onshore middle distillate inventories were 8.9% lower year-on-year.
    - Light distillate stocks climbed 395,000 barrels to a two-week high of 12.7 million barrels
in the week ended on Wednesday, while fuel oil stocks rose 519,000 barrels also to a two-week
high of 20.2 million barrels, Enterprise Singapore data showed.
    
    INDIA FUEL EXPORTS
    - India's diesel exports rose in November from a month earlier, while jet fuel exports also
climbed, government data showed on Tuesday.
    - Diesel exports from the country climbed 4.2% to 3.25 million tonnes in November, up from
3.12 million tonnes in October. The November exports were about 41% higher from the same month a
year ago.
    - Indian refiners raised output of diesel expecting a spurt in demand for the fuel following
implementation of new marine fuel rules from January 2020. India's diesel demand, which is
directly correlated to industrial activity, has been slow for most of the year, pressured by a
prolonged monsoon season and softening industrial activity.
    - India exported about 700,000 tonnes of jet fuel in November, compared with 620,000 tonnes
in October and 610,000 tonnes in November 2018, the data showed.
    
    CHINA NON-STATE CRUDE IMPORT QUOTAS
    - China has issued a first round of crude oil import quotas for private firms next year that
will allow non-state refiners to ship in 103.83 million tonnes of crude, state media and
industry sources said on Thursday.
    - That level is up 8% from the 96.25 million tonnes issued in the first batch of non-state
firm import quotas for 2019, according to Shanghai Securities News and Beijing-based energy
consultancy SIA Energy.
    
    FUJAIRAH STOCKS
    - Middle-distillate inventories in the Fujairah Oil Industry Zone rose 22.3% from a week
earlier to 4.9 million barrels in the week to Dec. 23, data via S&P Global Platts showed.

    - Stocks of middle distillates in the Fujairah oil hub have averaged 2.4 million barrels so
far in 2019, Reuters calculations showed. This compares with a weekly average of 2.8 million
barrels in 2018.
    - Weekly Fujairah middle distillate stocks have more than trebled, when compared with
year-ago levels.
    
    API INVENTORY DATA
    - U.S. crude oil stocks fell more than expected in the most recent week while gasoline and
distillate inventories increased, data from industry group the American Petroleum Institute
showed on Tuesday.
    - Crude inventories fell by 7.9 million barrels in the week to Dec. 20 to 444.1 million
barrels, compared with analysts' expectations for a draw of 1.83 million barrels.
    - Distillate fuel inventories, which include diesel and heating oil, rose by 1.68 million
barrels, compared with expectations for an 867,000-barrel gain, the data showed. 

    SINGAPORE CASH DEALS
    - One gasoil trade, no jet fuel deals.
    - Singapore trader Hin Leong sold 158,000 barrels of 10ppm gasoil to BP for Jan. 10-14
loading at a premium of $1.05 a barrel to Singapore quotes.
    - For more information, please click
    
    OTHER NEWS
    - Oil prices rose, buoyed by a potential breakthrough in the Sino-U.S. trade war and
OPEC-led efforts to constrain supply, although trading was quiet as many markets were in holiday
mode.
    - PetroChina has provisionally chartered an Aframax tanker at a record U.S.-Europe freight
rate, two shipbrokers said on Tuesday, reflecting strong demand for low-sulfur U.S. crude.

    
    ASSESSMENTS
 MID-DISTILLATES                                                                       
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               79.10     1.11       1.42       77.99  GO-SIN
 GO 0.5 Diff                     -2.16     0.19      -8.09       -2.35  GO-SIN-DIF
 Spot Gas Oil 0.25%              79.71     1.12       1.43       78.59  GO25-SIN
 GO 0.25 Diff                    -1.55     0.20     -11.43       -1.75  GO25-SIN-DIF
 Spot Gas Oil 0.05%              80.99     1.18       1.48       79.81  GO005-SIN
 GO 0.05 Diff                    -0.27     0.26     -49.06       -0.53  GO005-SIN-DIF
 Spot Gas Oil 0.001%             82.01     1.00       1.23       81.01  GO10-SIN
 GO 0.001 Diff                    0.75     0.08      11.94        0.67  GO10-SIN-DIF
 Spot Jet/Kero                   80.34     0.55       0.69       79.79  JET-SIN
 Jet/Kero Diff                    0.06    -0.07     -53.85        0.13  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 Uttaresh.V)
  
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