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Oil report

Asia Distillates-Gasoil cracks gain; near-term outlook still bleak

    SINGAPORE, Sept 30 (Reuters) - Asia's cash discounts for 10 ppm gasoil remained unchanged on
Wednesday, while refining margins for the industrial fuel rose as raw material crude prices
weakened amid demand concerns.
    The regional gasoil market has adequate supplies, while a recovery in demand has taken a hit
due to a resurgence in COVID-19 cases in several countries, trade sources said.
    Cash discounts for 10 ppm gasoil GO10-SIN-DIF were unchanged at 53 cents a barrel to
Singapore quotes.
    Refining profit margins, or cracks, for 10 ppm gasoil were at $3.09 a barrel
over Dubai crude during Asian trading hours, 70 cents higher than Tuesday.
    Cracks for the benchmark gasoil grade in Singapore, which have gained about 42% over the
last week, are still at their weakest seasonal levels on record, according to Refinitiv Eikon
data that goes back to 2014.
    "Focusing further on gasoil's historic weakness, we see little chance of cracks managing any
sustained increase over the next few weeks," consultancy JBC Energy said in a note.
    
    AIR PASSENGER DATA - IATA
    - The International Air Transport Association (IATA) has downgraded its 2020 airline traffic
forecast to reflect a weaker-than-expected recovery. It now expects full-year passenger traffic
to decline 66% from last year, compared with the earlier estimate for a 63% decline.
 
    - Global air passenger traffic for August showed demand was down 75.3% from a year earlier,
only a slight improvement from a 79.5% annual decline in July, the IATA said on Tuesday.
    - "August's disastrous traffic performance puts a cap on the industry's worst-ever summer
season," Alexandre de Juniac, IATA's chief executive officer, said in a statement.
    "International demand recovery is virtually non-existent and domestic markets in Australia
and Japan actually regressed in the face of new outbreaks and travel restrictions."
    - August passenger traffic for Asia-Pacific airlines dived 95.9% compared with a
year-earlier period, nearly in line with the plunge in July, according to IATA data.
    - Among regional markets, India's domestic passenger demand was down 73.6% in August
year-on-year, while passenger demand in Japan was 68.6% lower compared with the corresponding
period last year, the IATA said.
    
    INVENTORIES
    - Middle-distillate inventories in the Fujairah Oil Industry Zone slipped 7.9% to 4.3
million barrels in the week ended Sept. 28, data via S&P Global Platts showed.
    - The weekly stocks in Fujairah have averaged 3.9 million barrels so far in 2020, compared
with the weekly average of 2.4 million barrels in 2019, Reuters calculations showed.
    - Meanwhile, U.S. distillate fuel inventories fell by 3.4 million barrels, compared with
expectations for a draw of 917,000 barrels, data from industry group the American Petroleum
Institute (API) showed on Tuesday.
    
    SINGAPORE CASH DEALS
    - Two gasoil deals, no jet fuel trades
        
 MID-DISTILLATES                                                                       
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               42.05    -0.61      -1.43       42.66  GO-SIN
 GO 0.5 Diff                     -1.90     0.06      -3.06       -1.96  GO-SIN-DIF
 Spot Gas Oil 0.25%              42.45    -0.61      -1.42       43.06  GO25-SIN
 GO 0.25 Diff                    -1.50     0.06      -3.85       -1.56  GO25-SIN-DIF
 Spot Gas Oil 0.05%              42.87    -0.49      -1.13       43.36  GO005-SIN
 GO 0.05 Diff                    -1.08     0.18     -14.29       -1.26  GO005-SIN-DIF
 Spot Gas Oil 0.001%             43.42    -0.67      -1.52       44.09  GO10-SIN
 GO 0.001 Diff                   -0.53     0.00       0.00       -0.53  GO10-SIN-DIF
 Spot Jet/Kero                   40.03    -0.92      -2.25       40.95  JET-SIN
 Jet/Kero Diff                   -1.03    -0.08       8.42       -0.95  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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