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Oil report

Asia Distillates-Gasoil cash differentials rise to smallest discounts in over 2 months

    SINGAPORE, Nov 5 (Reuters) - Asia's cash differentials for 10 ppm gasoil firmed to their
smallest discounts in more than two months on Thursday, buoyed by firmer buying interest in the
physical market, while onshore middle distillate inventories in Singapore dropped to a two-week
low.
    Cash discounts for gasoil with 10 ppm sulphur content GO10-SIN-DIF narrowed by a cent on
Thursday to 34 cents a barrel to Singapore quotes, the slimmest discounts since Aug. 26. 
    Traders, however, remain concerned near-term supplies would outweigh demand due to a
resurgence in COVID-19 infections around the world and reimposed lockdowns in several markets.
    Refining profit margins for 10 ppm gasoil rose to $4.03 a barrel over Dubai
crude during Asian trade, up from $3.67 per barrel on Wednesday.
    
    TRADERS CHARTER SUPERTANKERS FOR GASOIL SHIPMENT, STORAGE
    - Asian traders have chartered at least four supertankers to ship gasoil with the option of
stowing surplus fuel if a second wave of the COVID-19 pandemic shrinks global demand, two
shipping sources and an analyst said.
    - Several trading companies have chartered new Very Large Crude Carriers (VLCCs), primarily
meant to carry crude, to ship gasoil in bulk on their maiden voyages and it can be economical to
use them for storage at current low freight rates, the sources said.
    
    INVENTORIES
    - Singapore's middle distillate inventories slipped 5.6% to 14.9 million barrels in the week
to Nov. 4, according to Enterprise Singapore data.
    - Weekly Singapore middle distillate inventories have averaged about 13.5 million barrels so
far in 2020, Reuters calculations showed. This week's stocks were 34.5% higher year-on-year.
    - U.S. distillate stockpiles fell by 1.6 million barrels in the week to Oct. 30, versus
expectations for a 2 million-barrel draw, the U.S. Energy Information Administration data showed
on Wednesday.
    
    SINGAPORE CASH DEALS
    - No jet fuel trade, three gasoil deals.
    
    OTHER NEWS
    - Asian refiners' profit from producing very low sulphur fuel oil (VLSFO) climbed to
six-month highs this week as output cuts keep supplies tight while demand for the shipping fuel
at most ports are back at pre-pandemic levels, traders and analysts said.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                43.01     1.34       3.22       41.67  GO-SIN
 GO 0.5 Diff                      -1.45     0.01      -0.68       -1.46  GO-SIN-DIF
 Spot Gas Oil 0.25%               43.31     1.34       3.19       41.97  GO25-SIN
 GO 0.25 Diff                     -1.15     0.01      -0.86       -1.16  GO25-SIN-DIF
 Spot Gas Oil 0.05%               43.55     1.38       3.27       42.17  GO005-SIN
 GO 0.05 Diff                     -0.91     0.05      -5.21       -0.96  GO005-SIN-DIF
 Spot Gas Oil 0.001%              44.12     1.34       3.13       42.78  GO10-SIN
 GO 0.001 Diff                    -0.34     0.01      -2.86       -0.35  GO10-SIN-DIF
 Spot Jet/Kero                    42.91     1.42       3.42       41.49  JET-SIN
 Jet/Kero Diff                    -0.31     0.05     -13.89       -0.36  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 Amy Caren Daniel)
  
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