July 24, 2020 / 11:15 AM / 21 days ago

Asia Distillates-Gasoil cash premiums drop, cracks decline

    SINGAPORE, July 24 (Reuters) - Asia's cash premiums for 10 ppm gasoil dropped on Friday to
their lowest level in more than 1-1/2 months, hurt by weaker buying interest in the physical
market.
    Cash premiums for 10 ppm gasoil GO10-SIN-DIF fell to 46 cents a barrel to Singapore
quotes, the lowest since June 9. They were at a premium of 53 cents a barrel on Thursday.
    Refining margins or cracks for gasoil with 10 ppm sulphur content dropped 50
cents to $6.78 a barrel over Dubai crude during Asian trading hours on Friday.
    The overall pace and effectiveness of economic activity in the region would be an important
factor to dictate the demand recovery for gasoil in coming months, industry analysts said.
    "On the demand side, compared to the large-scale lockdowns happened in Asia a few months
back, we are now seeing more localised containment measures as countries lift their lockdown
restrictions," said Qiaoling Chen, analyst at Wood Mackenzie.
    "This means the impact on fuels such as diesel is very unlikely to be the same extent we saw
in April when oil demand fell the steepest. Our latest July outlook expects diesel to return to
positive growth by the fourth quarter this year."
    
    ARA STOCKS
    - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA dipped 1.9% to 2.7 million tonnes in the week to July 23, data from
Dutch consultancy Insights Global showed.
    - The data showed ARA jet fuel inventories STK-JET-ARA rose 0.8% to 984,000 tonnes, the
highest on record according to data that goes back to 2003.
    - Compared with a year earlier, jet fuel stocks were 24.2% higher, while gasoil inventories
were down 10.4%.
    
    SINGAPORE CASH DEALS
    - No gasoil deals, no jet fuel trades
    
    OTHER NEWS
    -  India's crude oil processing gathered pace in June, rising 10.9% from May to 4.29 million
barrels per day, as further easing of coronavirus-led curbs lifted fuel demand.
    - Congestion at China's east coast oil ports that is adding to costs for shippers and
importers is likely to run well into August, with crude shipments set to hit another record high
this month, according to analysts and Refinitiv data.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               48.48    -1.85      -3.68       50.33  GO-SIN
 GO 0.5 Diff                     -0.93    -0.02       2.20       -0.91  GO-SIN-DIF
 Spot Gas Oil 0.25%              49.12    -1.85      -3.63       50.97  GO25-SIN
 GO 0.25 Diff                    -0.29    -0.02       7.41       -0.27  GO25-SIN-DIF
 Spot Gas Oil 0.05%              49.83    -1.95      -3.77       51.78  GO005-SIN
 GO 0.05 Diff                     0.42    -0.12     -22.22        0.54  GO005-SIN-DIF
 Spot Gas Oil 0.001%             49.87    -1.90      -3.67       51.77  GO10-SIN
 GO 0.001 Diff                    0.46    -0.07     -13.21        0.53  GO10-SIN-DIF
 Spot Jet/Kero                   43.84    -1.81      -3.96       45.65  JET-SIN
 Jet/Kero Diff                   -0.32     0.00       0.00       -0.32  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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