Oil report

Asia Distillates-Gasoil refining margins drop amid plentiful supplies

    SINGAPORE, Oct 13 (Reuters) - Asian refining margins for 10 ppm gasoil slipped on Tuesday,
as feedstock crude prices gained, while cash differentials for the industrial fuel edged higher
amid steady buying interest for physical cargoes.
    Refining margins, also known as cracks, for 10 ppm gasoil dropped 9 cents to
$4.20 a barrel over Dubai crude during Asian trading hours.
    The gasoil cracks have climbed 75.7% over the last two weeks, but they are still at their
weakest seasonal levels on record, according to Refinitiv Eikon data that goes back to 2014.
    Ongoing run cuts at some regional refineries have helped tighten supplies, but demand
continues to struggle amid extended coronavirus lockdowns in several markets, trade sources
    Meanwhile, the likelihood of Chinese refiners trying to exhaust their export quotas for the
year would keep the regional gasoil market well-supplied in the near-term, traders added.
    Cash discounts for gasoil with 10 ppm sulphur content GO10-SIN-DIF were at 46 cents a
barrel to Singapore quotes, the smallest since Aug. 28. They were at 50 cents a barrel on
    The exchange of futures for swaps (EFS), which determines the gasoil price spread between
Singapore and Northwest Europe, traded around minus $5 per tonne on Tuesday,
typically making it unworkable for arbitrage shipments, thus keeping the available supplies
trapped mostly within the region.
    Arbitrage is usually profitable when the EFS trades at about minus $15 a tonne or below,
though it also depends on other factors such as freight rates, according to traders.
    - One jet fuel trade, no gasoil deals
    - China's crude oil imports rose 2.1% in September from a month ago as some delayed cargoes
finally cleared customs after a months-long port congestion eased, while onshore storage
capacity was expanded.
    - Oil prices rebounded on Tuesday, drawing support from robust China data although concerns
about waning demand elsewhere and supply resumptions in Norway, the Gulf of Mexico and Libya
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                43.80     0.38       0.88       43.42  GO-SIN
 GO 0.5 Diff                      -1.72    -0.01       0.58       -1.71  GO-SIN-DIF
 Spot Gas Oil 0.25%               44.26     0.38       0.87       43.88  GO25-SIN
 GO 0.25 Diff                     -1.26    -1.16    1160.00       -0.10  GO25-SIN-DIF
 Spot Gas Oil 0.05%               44.40     0.37       0.84       44.03  GO005-SIN
 GO 0.05 Diff                     -1.12    -0.02       1.82       -1.10  GO005-SIN-DIF
 Spot Gas Oil 0.001%              45.06     0.43       0.96       44.63  GO10-SIN
 GO 0.001 Diff                    -0.46     0.04      -8.00       -0.50  GO10-SIN-DIF
 Spot Jet/Kero                    42.31    -0.03      -0.07       42.34  JET-SIN
 Jet/Kero Diff                    -0.48     0.02      -4.00       -0.50  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 Sherry Jacob-Phillips)