Oil report

Asia Distillates-Gasoil cracks rise as crude prices dip; market still frail

    SINGAPORE, Sept 7 (Reuters) - Asian refining margins for 10 ppm gasoil climbed on Monday,
partly helped by weaker raw material crude prices, but the market for the industrial fuel
remains pressured by abundant supplies and lacklustre demand.
    Refining profit margins, also known as cracks, for 10 ppm gasoil rose to $3.76
a barrel over Dubai crude during Asian trading hours, compared with $3.46 per barrel on Friday.
    Cracks for the benchmark gasoil grade in Singapore, which have shed 35% over the last month,
remain about 75% lower than the historical average for this time of year, Refinitiv Eikon data
    Extended coronavirus lockdowns in several key markets have rattled demand for the fuel
across the region, which has also been grappling with supply issues on the back of higher
exports coming from China and India, market watchers said.
    India's gasoil exports rose to a three-month high of 2.4 million tonnes in August, while
China's exports soared to a four-month high of 1.71 million tonnes last month, Refinitiv oil
research assessments showed.
    Gasoil exports from China would likely climb back to the 2 million tonnes range for the
remainder of the year, according to the assessments.
    The current lack of arbitrage opportunities is another factor, contributing to supplies
being locked within the region, trade sources said.
    The exchange of futures for swaps (EFS), which determines the gasoil price spread between
Singapore and Northwest Europe, flipped into positive territory on Monday, trading
around 18 cents per tonne, typically making it unworkable for arbitrage shipments.
    Arbitrage is usually profitable when the EFS trades at about minus $15 a tonne or below,
though it depends on other factors such as freight rates as well, according to traders.
    Cash discounts for 10 ppm gasoil GO10-SIN-DIF were at 64 cents a barrel to Singapore
quotes on Monday.
    - No gasoil deals, no jet fuel trades
    - China's crude oil imports in August climbed 13% from a year earlier, buoyed by hefty
orders placed earlier this year when global oil prices collapsed and as cargoes previously
delayed by congestion at arrival ports finally cleared customs.
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                42.85    -1.72      -3.86       44.57  GO-SIN
 GO 0.5 Diff                      -2.28     0.05      -2.15       -2.33  GO-SIN-DIF
 Spot Gas Oil 0.25%               43.08    -1.73      -3.86       44.81  GO25-SIN
 GO 0.25 Diff                     -2.04     0.05      -2.39       -2.09  GO25-SIN-DIF
 Spot Gas Oil 0.05%               43.36    -1.66      -3.69       45.02  GO005-SIN
 GO 0.05 Diff                     -1.77     0.10      -5.35       -1.87  GO005-SIN-DIF
 Spot Gas Oil 0.001%              44.49    -1.75      -3.78       46.24  GO10-SIN
 GO 0.001 Diff                    -0.64     0.02      -3.03       -0.66  GO10-SIN-DIF
 Spot Jet/Kero                    38.83    -1.77      -4.36       40.60  JET-SIN
 Jet/Kero Diff                    -1.10     0.08      -6.78       -1.18  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 Hugh Lawson)