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Energy

Asia Distillates-Gasoil spot premiums linger near 2-mth lows, prompt-month spread widens

    SINGAPORE, Aug 5 (Reuters) - Asia's cash premiums for 10ppm gasoil lingered near their
lowest levels in more than two months on Wednesday, while the prompt-month spread for the
industrial fuel grade in Singapore deepened its contango structure.
    The likelihood of increased exports from key markets due to weaker domestic demand alongside
limited East-West arbitrage opportunities were prompting a supply overhang in the region, trade
sources said.
    Fresh lockdowns due to a resurgence in COVID-19 cases piled on woes around gasoil demand
that typically takes a seasonal hit during monsoon as heavy rainfall and floods hammer
transportation demand in some parts of the region. 
    Cash premiums for gasoil with 10 ppm sulphur content GO10-SIN-DIF remained unchanged at 9
cents a barrel to Singapore quotes on Wednesday.
    The August/September time spread for 10 ppm gasoil, which flipped to a
contango structure on Tuesday, traded at a discount of 25 cents a barrel, compared with minus 9
cents per barrel a day earlier, Refinitiv Eikon data showed.
    
    INVENTORIES
    - Middle-distillate inventories in the Fujairah Oil Industry Zone dropped 19.1% to 3.6
million barrels in the week ended Aug. 3, 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 3.8 million barrels, compared with
expectations for a build of 279,000 barrels, data from industry group the American Petroleum
Institute (API) showed on Tuesday.

    SINGAPORE CASH DEALS
    - Two 500 ppm gasoil deals, one jet fuel trade
    
    OTHER NEWS
    - Oil prices firmed on Wednesday after data showed a big drop in U.S. crude inventories,
although concerns mounting virus cases will lead to reduced fuel demand capped gains.
    - U.S. oil refining capacity this year could decline by the largest amount in nearly a
decade as pandemic-related travel curbs and a fire shut several plants, reversing years of small
gains.
    
    
    ASSESSMENTS
 MID-DISTILLATES                                                                         
 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                 48.46     1.37       2.91       47.09  GO-SIN
 GO 0.5 Diff                       -1.50    -0.05       3.45       -1.45  GO-SIN-DIF
 Spot Gas Oil 0.25%                49.01     1.32       2.77       47.69  GO25-SIN
 GO 0.25 Diff                      -0.95    -0.10      11.76       -0.85  GO25-SIN-DIF
 Spot Gas Oil 0.05%                49.05     1.19       2.49       47.86  GO005-SIN
 GO 0.05 Diff                      -0.91    -0.23      33.82       -0.68  GO005-SIN-DIF
 Spot Gas Oil 0.001%               50.05     1.42       2.92       48.63  GO10-SIN
 GO 0.001 Diff                      0.09     0.00       0.00        0.09  GO10-SIN-DIF
 Spot Jet/Kero                     44.35     1.55       3.62       42.80  JET-SIN
 Jet/Kero Diff                     -0.45    -0.01       2.27       -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 Uttaresh.V)
  
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