November 25, 2019 / 11:13 AM / 11 days ago

Asia Distillates-Gasoil cash premiums drop to lowest in over two months

    SINGAPORE, Nov 25 (Reuters) - Asia's cash premiums for 10 ppm gasoil weakened on Monday,
slipping to their lowest in more than two months, while the backwardated structure of the
front-month time spread for the industrial fuel grade narrowed.
    Cash premiums for gasoil with 10 ppm sulphur content GO10-SIN-DIF dropped to 14 cents a
barrel to Singapore quotes on Monday, a level not seen since Sept. 19. They were at a premium of
19 cents a barrel on Friday.
    The December/January time spread for 10 ppm gasoil, which has narrowed about
85% in the last month, traded at a premium of 14 cents a barrel on Monday. The front-month time
spread was at 15 cents per barrel on Friday.
    Refining profit margins, also known as cracks, for 10 ppm gasoil remained
unchanged at $13.97 a barrel over Dubai crude during Asian trade on Monday.
    Gasoil margins have dropped 23% in the last month, hurt by abundant supplies and lacklustre
demand.
    Meanwhile, refining margins for jet fuel fell to $13.62 per barrel over Dubai
crude on Monday, down from $13.72 per barrel on Friday. 
    Cash differentials for jet fuel JET-SIN-DIF were at a discount of 61 cents per barrel to
Singapore quotes on Monday, compared with a 58-cent discount in the previous session on Friday.
    
    SINGAPORE CASH DEALS
    - One gasoil trade, one jet fuel deal.
    - Singapore trader Hin Leong bought 160,000 barrels of jet fuel from BP for Dec. 10-14
loading at $75.80 a barrel.
    - Hin Leong bought 150,000 barrels of 10 ppm gasoil from BP for Dec. 10-14 loading at a
premium of 10 cents a barrel to December Singapore quotes.
    - For more information, please click
    
    OTHER NEWS
    - Tighter supplies of heavy sour crude oil have combined with increased demand for the
high-sulphur refining feedstock from some Asian refiners to hoist Middle East oil benchmarks to
multi-year highs.
    - With Saudi Aramco yet to name any major foreign investors in its upcoming share sale,
Malaysia's state energy company Petronas decided to take a pass on Friday. Expectations that
Aramco customers and allies around the world would take significant stakes in the company have
so far not materialised, with the listing looking like it will be reliant on local retail and
institutional investors.
    - Oil prices rose as positive comments from the United States and China rekindled hopes in
global markets that the world's two largest economies could soon sign an interim deal to end
their bitter trade war.
    
    ASSESSMENTS    
 MID-DISTILLATES                                                                          
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                72.68    -0.18      -0.25       72.86  GO-SIN
 GO 0.5 Diff                      -3.28    -0.01       0.31       -3.27  GO-SIN-DIF
 Spot Gas Oil 0.25%               72.97    -0.18      -0.25       73.15  GO25-SIN
 GO 0.25 Diff                     -2.99    -0.01       0.34       -2.98  GO25-SIN-DIF
 Spot Gas Oil 0.05%               75.59    -0.18      -0.24       75.77  GO005-SIN
 GO 0.05 Diff                     -0.37    -0.01       2.78       -0.36  GO005-SIN-DIF
 Spot Gas Oil 0.001%              76.10    -0.22      -0.29       76.32  GO10-SIN
 GO 0.001 Diff                     0.14    -0.05     -26.32        0.19  GO10-SIN-DIF
 Spot Jet/Kero                    75.02    -0.25      -0.33       75.27  JET-SIN
 Jet/Kero Diff                    -0.61    -0.03       5.17       -0.58  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 David Evans)
  
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