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 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 0.5 Diff -1.51 0.05 -3.21 -1.56
Spot Gas Oil 0.25% 58.47 0.55 0.95 57.92
GO 0.25 Diff -1.41 0.05 -3.42 -1.46
Spot Gas Oil 0.05% 58.57 0.55 0.95 58.02
GO 0.05 Diff -1.31 0.05 -3.68 -1.36
Spot Gas Oil 0.001% 59.68 0.59 1.00 59.09
GO 0.001 Diff -0.2 0.08 -28.57 -0.28
Spot Jet/Kero 57.93 -0.2 -0.34 58.13
Jet/Kero Diff -0.26 -0.14 116.67 -0.12
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)
Our Standards: The Thomson Reuters Trust Principles.