SINGAPORE, March 17 (Reuters) - Asian refining margins for 10 ppm gasoil extended losses on Wednesday, slipping to a near two-month low over concerns a rebound in fuel demand may take longer than anticipated. "Developments on the demand side have meanwhile remained broadly supportive, though the recovery is once more facing headwinds," said JBC Energy in a note to clients on Wednesday. "Any sustained near-term optimism for individual products remains misplaced in our view, and is likely unsustainable, if only because of the significant amount of spare refining capacity that could run higher to remedy any actual continued tightness, with the last few years also having increasingly expanded the speed at which players can react to strong pricing signals," said JBC. The front-month 10 ppm gasoil crack fell to $5.70 per barrel over Dubai crude, its lowest since Jan. 27, during Asian trading hours, compared with $5.87 a barrel in the previous trading session, Refinitiv data in Eikon showed. This was despite weaker crude oil prices on Wednesday, which slipped for a fourth day as concerns about weaker demand in Europe outweighed an industry report that showed U.S. crude stockpiles unexpectedly fell last week. INVENTORIES Middle-distillate inventories in the Fujairah Oil Industry Zone dropped to a seven-month low in the week to March 15, down 7% from the previous week to 3.461 million barrels, data via S&P Global Platts showed. Fujairah's middle distillate stocks, however, were 13% higher than year-ago levels. Weekly stocks in Fujairah have averaged 4.2 million barrels so far this year, on par with the weekly average of 4.2 million barrels in 2020, Reuters calculations showed. U.S. distillate fuel inventories, which include diesel and heating oil, rose by 904,000 barrels, versus expectations for a draw of 3.4 million barrels, data from industry group American Petroleum Institute showed. CHINA OUTPUT China's diesel output rose to 24.59 million tonnes in the first two months of 2021, up 4% from a year earlier, according to data released by the National Bureau of Statistics on Wednesday. Output of kerosene, however, fell to 6.818 million tonnes during the same period, down 10% from last year, the data showed. The statistics bureau did not disclose numbers for January and February separately. INDIA RESPONDS Indian state refiners are planning to cut oil imports from Saudi Arabia by about a quarter in May, in an escalating stand-off with Riyadh following OPEC's decision to ignore calls from New Delhi to help the global economy with higher supply. SMUGGLING BUST China foiled criminals seeking to smuggle nearly 1 million tonnes of refined oil worth 5 billion yuan ($770 million), with officials seizing 11 ships and detaining 171 suspects in a sprawling swoop on Tuesday, customs authorities said. A total of 14 gangs were busted on Tuesday, the General Administration of Customs said in a statement. It was not immediately clear if the gangs were trying to smuggle the oil into or out of the country. China is Asia's biggest refiner and consumer of oil products such as gasoline and diesel. SINGAPORE CASH DEALS No gasoil or jet fuel trades. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 70.49 0.13 0.18 70.36GO 0.5 Diff -1.58 -0.01 0.64 -1.57 Spot Gas Oil 0.25% 70.66 0.13 0.18 70.53 GO 0.25 Diff -1.41 -0.01 0.71 -1.40 Spot Gas Oil 0.05% 70.99 0.13 0.18 70.86 GO 0.05 Diff -1.08 -0.01 0.93 -1.07 Spot Gas Oil 0.001% 71.89 0.13 0.18 71.76 GO 0.001 Diff -0.18 -0.01 5.88 -0.17 Spot Jet/Kero 69.09 0.17 0.25 68.92 Jet/Kero Diff -0.32 0.06 -15.79 -0.38 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 Roslan Khasawneh; Editing by Krishna Chandra Eluri)
Our Standards: The Thomson Reuters Trust Principles.