March 5, 2019 / 10:52 AM / 5 months ago

Asia Distillates-Gasoil refining margins dip, cash discount widens

    SINGAPORE, March 5 (Reuters) - Asian refining margins for 10 ppm gasoil slipped on Tuesday,
while weaker buying interest in the physical market pushed cash differentials for the industrial
fuel lower.
    Refining margins or cracks for gasoil with 10ppm sulphur content were at
$15.99 a barrel over Dubai crude during Asian trade, 15 cents lower from Monday's $16.14 per
barrel.
    Cracks for the region's benchmark gasoil grade, however, have gained about 15 percent in the
last one month, and are seasonally at their highest levels since 2015, Refinitiv Eikon data
showed.
    Despite a few gasoil shipments towards the West from Asia last month, the arbitrage window
is not quite open at the moment, trade sources said, as Singapore cracks are quite strong and
the region's supplies are tightening with seasonal refinery turnarounds picking up.  
    The exchange of futures for swaps (EFS), which determines the gasoil price spread between
Singapore and North West Europe, narrowed to around minus $16 per tonne on Tuesday,
according to Refinitiv Eikon data.
    The arbitrage is usually profitable when the EFS trades at about minus $18 a tonne or below,
traders said.
    Cash discounts for 10ppm gasoil GO10-SIN-DIF were at 29 cents a barrel to Singapore quotes
on Tuesday, compared with a 28-cents discount a day earlier. 
    Meanwhile, cash discounts for jet fuel JET-SIN-DIF remained unchanged at 29 cents a barrel
to Singapore quotes as the physical market in the Singapore window remained quiet with no bids
or deals on Tuesday.
    Jet fuel refining margins dropped to $14.12 a barrel over Dubai crude on
Tuesday, compared with $14.54 a barrel on Monday.

   
    SINGAPORE CASH DEALS
    - One gasoil deal, no jet fuel trades.
    - Winson Oil bought 150,000 barrels of 10ppm gasoil from Trafigura for March 20-24 loading,
at a discount of 30 cents a barrel to Singapore quotes.
    - For more information, please click   
    
    
    OTHER NEWS
    - Oil prices fell on Tuesday as China cut its 2019 economic growth target, dimming the
outlook for fuel demand, although OPEC-led efforts to cut output still offered some support.

    - China will create a national oil and gas pipeline company, the country's state planner
said on Tuesday in the first official acknowledgement of a reform that has been anticipated by
the energy industry.
    - OPEC and its partners are unlikely to decide on their output policy in April as it would
be too early to get a clear picture of the impact of their supply cuts on the market by then,
three OPEC sources said on Monday. 
    - Libyan state oil company NOC said on Monday it had lifted force majeure at the El Sharara
oilfield, the country's biggest, which has been closed since December when state guards and
tribesmen seized it.

    
    ASSESSMENTS
 MID-DISTILLATES                                                                             
 CASH ($/T)             ASIA CLOSE         Change   % Change    Prev Close  RIC
 Spot Gas Oil 0.5%                  79.06     0.10        0.13       78.96  GO-SIN
 GO 0.5 Diff                        -2.31    -0.01        0.43       -2.30  GO-SIN-DIF
 Spot Gas Oil 0.25%                 79.46     0.10        0.13       79.36  GO25-SIN
 GO 0.25 Diff                       -1.91    -0.01        0.53       -1.90  GO25-SIN-DIF
 Spot Gas Oil 0.05%                 80.22     0.06        0.07       80.16  GO005-SIN
 GO 0.05 Diff                       -1.15    -0.05        4.55       -1.10  GO005-SIN-DIF
 Spot Gas Oil 0.001%                81.08     0.10        0.12       80.98  GO10-SIN
 GO 0.001 Diff                      -0.29    -0.01        3.57       -0.28  GO10-SIN-DIF
 Spot Jet/Kero                      79.06    -0.15       -0.19       79.21  JET-SIN
 Jet/Kero Diff                      -0.29     0.00        0.00       -0.29  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 Kirsten Donovan)
  
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