June 4, 2020 / 11:10 AM / a month ago

Asia Distillates-Gasoil cracks crawl up on lower raw material prices, cash premiums drop

    SINGAPORE, June 4 (Reuters) - Asian refining margins for 10 ppm gasoil inched up on Thursday
as raw material - crude - prices fell, but cash differentials for the industrial fuel slipped
amid an absence of deals in the physical market. 
    Refining margins for 10ppm gasoil were at $4.29 per barrel over Dubai crude
during Asian trading hours, 37 cents higher than Wednesday.
    Cash premiums for 10 ppm gasoil GO10-SIN-DIF dropped to 19 cents a barrel to Singapore
quotes on Thursday, compared with 35 cents a day earlier.
    Traders, however, hope gasoil demand would pick up in the coming weeks as more countries
lift coronavirus restrictions.
    The gasoil/diesel demand over the second half of this year is set to come in just below
200,000 barrels per day (bpd) year-on-year, which is a strong recovery compared with the 1.25
million bpd fall over the first half of 2020, according to JBC Energy.
    "The recovery in gasoline and diesel is seen quite consistent between the two, with easing
personal mobility restrictions also lifting economic (commercial) activity," said Kostantsa
Rangelova, lead Asia analyst at JBC Energy.
    
    INVENTORIES
    - Singapore onshore middle distillate stocks dipped 2% to a two-week low of 14.6 million
barrels in the week ended June 3, Enterprise Singapore data showed.
    - The weekly Singapore middle distillate inventories have averaged at 12.5 million barrels
so far in 2020, Reuters calculations showed. This week's stocks were 31.8% higher year-on-year.
    - U.S. distillate stockpiles rose by 9.9 million barrels to 174.3 million barrels, compared
with expectations for a 2.7 million-barrel build, the Energy Information Administration said on
Wednesday.
    
    APRIL AIR PASSENGER DATA - IATA
    - Global air passenger traffic for April showed that demand slumped 94.3% from a year
earlier due to coronavirus-led travel restrictions, the International Air Transport Association
(IATA) said on Wednesday.
    - April passenger traffic for Asia-Pacific airlines plunged 98% compared to the year-ago
period, even worse than a 70.2% drop in March, according to IATA data.
    - "April was a disaster for aviation as air travel almost entirely stopped. But April may
also represent the nadir of the crisis. Flight numbers are increasing. Countries are beginning
to lift mobility restrictions," IATA Chief Executive Alexandre de Juniac said.
    - Among regional markets, China's domestic passenger demand was down 66.6% in April
year-on-year, while airlines in Japan posted a decline of 88.7% in domestic traffic.
    
    SINGAPORE CASH DEALS
    - No jet fuel trade, no gasoil deal
    
    OTHER NEWS
    - The volume of oil products traded during S&P Global Platts' Market-on-Close process in
Singapore plunged 74% in May from a year ago as the coronavirus pandemic slashed demand and a
major trader halted business, data analysed by Reuters showed.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                       
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               40.63    -0.51      -1.24       41.14  GO-SIN
 GO 0.5 Diff                     -2.25     0.28     -11.07       -2.53  GO-SIN-DIF
 Spot Gas Oil 0.25%              41.53    -0.51      -1.21       42.04  GO25-SIN
 GO 0.25 Diff                    -1.35     0.28     -17.18       -1.63  GO25-SIN-DIF
 Spot Gas Oil 0.05%              42.27    -0.61      -1.42       42.88  GO005-SIN
 GO 0.05 Diff                    -0.61     0.18     -22.78       -0.79  GO005-SIN-DIF
 Spot Gas Oil 0.001%             43.06    -0.97      -2.20       44.03  GO10-SIN
 GO 0.001 Diff                    0.19    -0.16     -45.71        0.35  GO10-SIN-DIF
 Spot Jet/Kero                   38.86    -0.93      -2.34       39.79  JET-SIN
 Jet/Kero Diff                   -0.22     0.03     -12.00       -0.25  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 Vinay Dwivedi)
  
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