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Financials

Asia Distillates-Gasoil cash discounts narrow, refining profits dip

    SINGAPORE, Jan 11 (Reuters) - Asian cash differentials for 10 ppm gasoil firmed on Monday,
helped by firmer buying interests in the physical market, but refining margins for the
industrial fuel slipped despite weaker feedstock crude prices.
    Cash differentials for gasoil with 10 ppm sulphur content GO10-SIN-DIF were at a discount
of 20 cents a barrel to Singapore quotes, compared with a discount of 28 cents per barrel on
Friday.
    The gasoil cash differentials, which have stayed in a negative territory for the last five
months, still remains under pressure as a persistent rise in COVID-19 cases is weighing on any
substantial demand recovery in the region.
    With a likelihood of steady exports from China and India in coming months, the near-term
gasoil market fundamentals would likely stay weak, trade sources said. 
    "While diesel stocks do remain a concern, we are starting to come around to the idea that
perhaps the forward market is overstating diesel's relative weakness, and by April diesel could
actually have strengthened versus gasoline," Vienna-based consultancy JBC Energy said in a note.
    Refining profit margins, also known as cracks, for 10 ppm gasoil dipped to
$5.08 a barrel over Dubai crude during Asian trading hours, 17 cents lower from Friday.
    Crude oil prices fell, hit by renewed concerns about global fuel demand amid tough
coronavirus lockdowns in Europe and new curbs on movement in China, the world's second-largest
oil user, where infections jumped.
    
    INDIA FUEL DEMAND HITS 11-MONTH PEAK IN DEC
    - India's fuel consumption in December rose for a fourth straight month as economic activity
and transport demand continued to recover from a coronavirus-led hiatus.
    - Diesel consumption, which accounts for about 40% of overall refined fuel sales in India,
rose 1.9% to 7.18 million tonnes from the previous month, while declining by 2.8% year-on-year.
    
    SINGAPORE CASH DEALS
    - No gasoil deals, no jet fuel trades

    OTHER NEWS
    - Saudi Arabia's voluntary oil production cut is expected to bring the oil market into
deficit for most of 2021 even as new lockdowns to contain the spread of the coronavirus batter
oil demand, analysts say.
    
    ASSESSMENTS    
 MID-DISTILLATES                                                                       
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               58.37     0.55       0.95       57.82  GO-SIN
 GO 0.5 Diff                     -1.51     0.05      -3.21       -1.56  GO-SIN-DIF
 Spot Gas Oil 0.25%              58.47     0.55       0.95       57.92  GO25-SIN
 GO 0.25 Diff                    -1.41     0.05      -3.42       -1.46  GO25-SIN-DIF
 Spot Gas Oil 0.05%              58.57     0.55       0.95       58.02  GO005-SIN
 GO 0.05 Diff                    -1.31     0.05      -3.68       -1.36  GO005-SIN-DIF
 Spot Gas Oil 0.001%             59.68     0.59       1.00       59.09  GO10-SIN
 GO 0.001 Diff                    -0.2     0.08     -28.57       -0.28  GO10-SIN-DIF
 Spot Jet/Kero                   57.93     -0.2      -0.34       58.13  JET-SIN
 Jet/Kero Diff                   -0.26    -0.14     116.67       -0.12  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 Rashmi Aich)
  
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