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Oil report

Asia Distillates-Gasoil cash differentials inch up, front-month spread narrows

    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 gasoil GO10-SIN-DIF were 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-SIN
 GO 0.5 Diff                     -2.03     0.02      -0.98       -2.05  GO-SIN-DIF
 Spot Gas Oil 0.25%              43.05    -1.21      -2.73       44.26  GO25-SIN
 GO 0.25 Diff                    -1.78     0.02      -1.11       -1.80  GO25-SIN-DIF
 Spot Gas Oil 0.05%              43.51    -1.17      -2.62       44.68  GO005-SIN
 GO 0.05 Diff                    -1.33     0.04      -2.92       -1.37  GO005-SIN-DIF
 Spot Gas Oil 0.001%             44.18    -1.18      -2.60       45.36  GO10-SIN
 GO 0.001 Diff                   -0.65     0.05      -7.14       -0.70  GO10-SIN-DIF
 Spot Jet/Kero                   39.95    -1.31      -3.17       41.26  JET-SIN
 Jet/Kero Diff                   -1.21    -0.01       0.83       -1.20  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 Subhranshu Sahu)
  
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