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Energy

Asia Distillates-Gasoil cash discounts narrow; Singapore middle distillate stocks slump

    SINGAPORE, June 3 (Reuters) - Asia's cash differentials for 10 ppm firmed on Thursday, after
Singapore middle distillate inventories plunged to their lowest level in nearly 15 months. 
    Cash discounts for gasoil with 10 ppm sulphur content GO10-SIN-DIF narrowed to 6 cents per
barrel to Singapore quotes, compared with a 12-cent discount a day earlier.
    Refining margins, or cracks, for 10 ppm gasoil rose to $8.78 per barrel over
Dubai crude during Asian trading hours, up from $8.51 a barrel on Wednesday.
    Meanwhile, jet fuel cracks in Singapore, which is currently more than 35% lower
than their five-year seasonal average for this time of the year, were up 12 cents at $6.47 per
barrel over Dubai crude. 
    "Middle distillates are proving to continue to be the weak link (in Asia), with jet demand
obviously still struggling on the back of reduced aviation demand," said Philip Jones-Lux,
energy market analyst at JBC Energy.
    "Diesel demand has proven relatively resilient through much of the pandemic, but with Indian
mobility taking a hit --a market where diesel is more prevalent in personal travel than
elsewhere in Asia -- and monsoon season coming, diesel is also now under pressure," he added.
    
    INVENTORIES
    - Singapore's middle distillate inventories dropped 7.9% to 11.5 million barrels in the week
to June 2, a level not seen since March last year, according to Enterprise Singapore data.

    - Weekly Singapore middle distillate inventories have averaged 13.89 million barrels so far
this year, compared with an average of 13.86 million barrels in 2020, Reuters calculations
showed. This week's stocks were 21.6% lower than a year earlier.
    - U.S. distillate fuel inventories, which include diesel and heating oil, climbed by 1.56
million barrels in the week to May 28, according to two market sources, citing American
Petroleum Institute (API) figures.
    
    SINGAPORE CASH DEALS
    - Two gasoil trades, no jet fuel deals
    
    OTHER NEWS
    - China's state planner on Thursday warned provincial and regional governments against
missing their energy consumption and efficiency targets for 2021 after two-thirds of them fell
short of at least some of their goals in the first quarter.
    - India's government will bring forward to 2023 from 2025 the possibility of fuel companies
selling gasoline containing up to 20% of ethanol (E20), according to brokers and a publication
in the country's official gazette on Wednesday.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               75.08     1.08       1.46          74  GO-SIN
 GO 0.5 Diff                     -2.62     0.03      -1.13       -2.65  GO-SIN-DIF
 Spot Gas Oil 0.25%              75.29     1.08       1.46       74.21  GO25-SIN
 GO 0.25 Diff                    -2.41     0.03      -1.23       -2.44  GO25-SIN-DIF
 Spot Gas Oil 0.05%               75.4     1.08       1.45       74.32  GO005-SIN
 GO 0.05 Diff                     -2.3     0.03      -1.29       -2.33  GO005-SIN-DIF
 Spot Gas Oil 0.001%             77.64     1.11       1.45       76.53  GO10-SIN
 GO 0.001 Diff                   -0.06     0.06     -50.00       -0.12  GO10-SIN-DIF
 Spot Jet/Kero                   74.82     0.71       0.96       74.11  JET-SIN
 Jet/Kero Diff                   -0.25    -0.05      25.00        -0.2  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;)
  
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