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Asia Distillates-Gasoil cash differentials flip to premium

    SINGAPORE, July 22 (Reuters) - Asia's cash differentials for 10 ppm gasoil flipped into a
narrow premium on Thursday, supported by active buying interests for physical cargoes, while
Singapore middle distillate inventories slipped to a six-week low.
    Cash differentials for gasoil with 10 ppm sulphur content GO10-SIN-DIF were at a premium
of 2 cents per barrel on Thursday, the strongest level in more than a month. They were at a
discount of 2 cents per barrel on Wednesday.
    Gasoil demand has come under renewed pressure due to a recent spike in coronavirus cases
that has led to reimposed lockdowns in the region, but the demand disruption is partly offset by
expectations for lower Chinese exports in July-August, a Singapore-based trader said.
    The gasoil market would likely stay rangebound in the near term until demand picks up
substantially, trade sources said.
    Refining margins, or cracks, for 10 ppm gasoil dropped to $8.09 per barrel
over Dubai crude during Asian trading hours, down from $8.23 per barrel a day earlier.
    Cracks for the benchmark gasoil grade in Singapore, which have averaged $8.30 per barrel
over the last two months, were currently about 38% lower compared with their five-year seasonal
average for this time of the year, Refinitiv Eikon data showed.
    
    INVENTORIES
    - Singapore's middle distillate inventories dropped 1.6% to 11.3 million barrels in the week
to July 21, according to Enterprise Singapore data.
    - Weekly Singapore middle distillate inventories have averaged 13.5 million barrels this
year, compared with an average of 13.9 million barrels in 2020, Reuters calculations showed.
This week's stocks were 19.9% lower than a year earlier.
    - U.S. distillate inventories, which include diesel and heating oil, fell by 1.3 million
barrels in the week to July 16, versus expectations for a 557,000-barrel rise, the Energy
Information Administration said on Wednesday.
    
    SINGAPORE CASH DEALS
    - One gasoil trade, no jet fuel deals
    
    OTHER NEWS
    - Global commodity trader Mercuria is aggressively expanding its energy transition business,
snapping up employees from oil majors BP Plc and Royal Dutch Shell, according to
three people familiar with the matter and employee LinkedIn profiles.
    - Oil prices rose on Thursday, extending strong gains made in previous sessions on
expectations of tighter supplies until the end of the year as economies recover from the
coronavirus crisis.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               76.05     2.57       3.50       73.48  GO-SIN
 GO 0.5 Diff                     -2.27     0.01      -0.44       -2.28  GO-SIN-DIF
 Spot Gas Oil 0.25%              76.15     2.57       3.49       73.58  GO25-SIN
 GO 0.25 Diff                    -2.17     0.01      -0.46       -2.18  GO25-SIN-DIF
 Spot Gas Oil 0.05%              76.36     2.57       3.48       73.79  GO005-SIN
 GO 0.05 Diff                    -1.96     0.01      -0.51       -1.97  GO005-SIN-DIF
 Spot Gas Oil 0.001%             78.34      2.6       3.43       75.74  GO10-SIN
 GO 0.001 Diff                    0.02     0.04    -200.00       -0.02  GO10-SIN-DIF
 Spot Jet/Kero                   75.91     2.72       3.72       73.19  JET-SIN
 Jet/Kero Diff                   -0.16     0.13     -44.83       -0.29  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 Aditya Soni)
  
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