Oil report

Asia Distillates-Gasoil cracks post weekly drop, cash discounts widen

    SINGAPORE, Sept 18 (Reuters) - Asian refining margins for 10 ppm gasoil posted a weekly
decline on Friday, weighed down by plentiful regional supplies amid persistent demand weakness
and lack of arbitrage opportunities.
    Refining margins or cracks for 10 ppm gasoil were at $2.94 a barrel over Dubai
crude during Asian trading hours, compared with a more than four-month low of $2.47 per barrel
on Thursday.
    Cracks for the benchmark gasoil grade have dropped 20.8% this week.
    Weaker domestic demand on the back of surging COVID-19 cases in India is resulting in steady
exports from the country, trade sources said. 
    Gasoil exports from India this month are expected to close around last month's 2.44 million
tonnes, Refinitiv oil research assessments showed.
    Meanwhile, China is expected to ramp up gasoil export volumes in coming months as refiners
try to exhaust their export quotas for the year, traders said.
    The exchange of futures for swaps (EFS), which determines the gasoil price spread between
Singapore and Northwest Europe, traded around minus 21 cents per tonne on Friday,
typically making it unworkable for arbitrage shipments, according to traders.
    Cash discounts for 10 ppm gasoil GO10-SIN-DIF were at 70 cents a barrel to Singapore
quotes, compared with a discount of 68 cents per barrel a day earlier.
    - Jet fuel stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-JET-ARA dropped 4.2% to 954,000 tonnes in the week ended Sept. 17, data from
Dutch consultancy Insights Global showed.
    - The data showed ARA gasoil inventories STK-GO-ARA rose 1.6% to 2.9 million tonnes.
    - Compared with a year earlier, ARA gasoil inventories were up 7.4%, while jet fuel stocks
were 42.2% higher.
    - No gasoil deals, no jet fuel trades

    - China's imports of fuel blending components are set to slow over the rest of 2020 having
more than doubled in the first seven months as rising fuel stockpiles snuff out importer
profits, industry sources said.
    - Oil prices ticked up on Friday on track for a weekly gain of about 9%, after Saudi Arabia
pressed allies to stick to production quotas and banks including Goldman Sachs predicted a
supply deficit.
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               44.01     1.80       4.26       42.21  GO-SIN
 GO 0.5 Diff                     -2.05     0.00       0.00       -2.05  GO-SIN-DIF
 Spot Gas Oil 0.25%              44.26     1.81       4.26       42.45  GO25-SIN
 GO 0.25 Diff                    -1.80     0.01      -0.55       -1.81  GO25-SIN-DIF
 Spot Gas Oil 0.05%              44.68     1.83       4.27       42.85  GO005-SIN
 GO 0.05 Diff                    -1.37     0.04      -2.84       -1.41  GO005-SIN-DIF
 Spot Gas Oil 0.001%             45.36     1.78       4.08       43.58  GO10-SIN
 GO 0.001 Diff                   -0.70    -0.02       2.94       -0.68  GO10-SIN-DIF
 Spot Jet/Kero                   41.26     1.80       4.56       39.46  JET-SIN
 Jet/Kero Diff                   -1.20    -0.01       0.84       -1.19  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)