SINGAPORE, Sept 21 (Reuters) - Asia's cash differentials for 10 ppm gasoil ticked higher on Monday as the front-month spread for the industrial fuel narrowed its contango, but traders said the regional market would continue to grapple with supplies for the remainder of this year. Cash discounts for 10 ppm gasoilwere at 65 cents a barrel to Singapore quotes, compared with 70 cents on Friday. The October/November time spread for gasoil with 10 ppm sulphur content traded at a discount of 45 cents a barrel, against Friday's 51 cents, Refinitiv Eikon data showed. Steady exports from China and India are expected to keep the Asian market well-supplied in the near term, while demand remains under pressure from extended lockdown measures in several markets, trade sources said. "Even though the demand outlook in the East looks much brighter now, the market cannot absorb the oversupply," consultancy Energy Aspects said in a monthly note. "In the East, despite strong demand in China, oversupply is a massive problem due to mushrooming refining capacity and the comatose jet market." Regional refiners have been blending jet fuel into the diesel pool due to a persistent weakness in refining margins for the aviation fuel. Refining margins, also known as cracks, for 10 ppm gasoil slipped to $2.77 a barrel over Dubai crude during Asian trading hours, down 17 cents from Friday. Meanwhile, jet fuel cracks were at a discount of 88 cents per barrel to Dubai crude, compared with minus 61 cents a barrel on Friday. TENDERS - Sri Lanka's Ceylon Petroleum Corp (Ceypetco) is seeking a cargo of 280,000 barrels of 500 ppm gasoil for discharge at Dolphin Tanker Berth and SPM Muthurajawela, Colombo over Oct. 26-27 on a DAP basis. - The tender closes on Sept. 29 and will remain valid for three days. SINGAPORE CASH DEALS - No gasoil deals, no jet fuel trades OTHER NEWS - Global oil refiners reeling from months of lacklustre demand and an abundance of inventories are cutting fuel production into the autumn because the recovery in demand from the impact of coronavirus has stalled, according to executives, refinery workers and industry analysts. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 42.80 -1.21 -2.75 44.01 GO 0.5 Diff -2.03 0.02 -0.98 -2.05 Spot Gas Oil 0.25% 43.05 -1.21 -2.73 44.26 GO 0.25 Diff -1.78 0.02 -1.11 -1.80 Spot Gas Oil 0.05% 43.51 -1.17 -2.62 44.68 GO 0.05 Diff -1.33 0.04 -2.92 -1.37 Spot Gas Oil 0.001% 44.18 -1.18 -2.60 45.36 GO 0.001 Diff -0.65 0.05 -7.14 -0.70 Spot Jet/Kero 39.95 -1.31 -3.17 41.26 Jet/Kero Diff -1.21 -0.01 0.83 -1.20 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 Subhranshu Sahu)
Our Standards: The Thomson Reuters Trust Principles.