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Oil report

Asia Distillates-Gasoil cash discounts narrow; Singapore middle distillate stocks drop

    SINGAPORE, Oct 8 (Reuters) - Asia's cash differentials for 10 ppm gasoil strengthened to
their narrowest discounts in more than a month on Thursday, while middle distillate inventories
in Singapore dropped to a six-week low.
    Cash discounts for gasoil with 10 ppm sulphur content GO10-SIN-DIF were at 51 cents a
barrel to Singapore quotes, the smallest since Sept. 1. They were at 54 cents a barrel on
Wednesday.
    Refining margins or cracks for 10 ppm gasoil dropped 55 cents to $4 a barrel
over Dubai crude during Asian trading hours, partly hurt by firmer raw material crude prices.
    Meanwhile, jet fuel cracks in Singapore were at $1.65 per barrel over Dubai
crude, down from $2.05 per barrel a day earlier.
    The frailty in jet fuel demand has been prompting refiners to blend the aviation fuel grade
into the gasoil pool for quite some time now, and industry analysts said the blending would
likely continue for a major part of next year as well.
    The regrade, the price spread between jet fuel and gasoil, for November stood
at a discount of $1.55 per barrel on Thursday, Refinitiv Eikon data showed.
    
    INVENTORIES
    - Singapore's middle distillate inventories dropped 2.8% to 14.8 million barrels in the week
to Oct. 7, according to Enterprise Singapore data.
    - Weekly Singapore middle distillate inventories have averaged about 13.4 million barrels so
far in 2020, Reuters calculations showed. This week's stocks were 27.9% higher year-on-year.
    - U.S. distillate stockpiles fell by 962,000 barrels in the week to Oct. 2, in line with
expectations, the U.S. Energy Information Administration data showed on Wednesday.
    
    SINGAPORE CASH DEALS
    - No jet fuel trades, no gasoil deals
    
    OTHER NEWS
    - European diesel markets have recovered this month from historic lows, as regional
refineries shut for maintenance and Russian exports drop, helping to offset persistently weak
demand. European refiners have pinned their hopes on a busy maintenance season to reduce high
storage levels built during coronavirus-related lockdowns. 
    - Oil rose above $42 a barrel on Thursday, supported by output shutdowns in the U.S. Gulf of
Mexico and the prospect of more supply losses in Norway, as well as by hopes for some U.S.
coronavirus relief aid.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close   RIC
 Spot Gas Oil 0.5%               43.90    -0.20      -0.45        44.10  GO-SIN
 GO 0.5 Diff                     -1.72     0.03      -1.71        -1.75  GO-SIN-DIF
 Spot Gas Oil 0.25%              44.31    -0.19      -0.43        44.50  GO25-SIN
 GO 0.25 Diff                    -1.31     0.03      -2.24        -1.34  GO25-SIN-DIF
 Spot Gas Oil 0.05%              44.52    -0.19      -0.42        44.71  GO005-SIN
 GO 0.05 Diff                    -1.10     0.03      -2.65        -1.13  GO005-SIN-DIF
 Spot Gas Oil 0.001%             45.11    -0.19      -0.42        45.30  GO10-SIN
 GO 0.001 Diff                   -0.51     0.03      -5.56        -0.54  GO10-SIN-DIF
 Spot Jet/Kero                   42.60    -0.21      -0.49        42.81  JET-SIN
 Jet/Kero Diff                   -0.57    -0.05       9.62        -0.52  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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