Asia Distillates-Gasoil cash discounts widen amid mounting supplies

    SINGAPORE, Sept 25 (Reuters) - Asia's cash discounts for 10 ppm gasoil widened on Friday,
hurt by subdued buying interest for physical cargoes amid abundant supplies available in the
    Cash differentials for 10 ppm gasoil GO10-SIN-DIF were at a discount of 66 cents a barrel
to Singapore quotes on Friday, compared with a discount of 63 cents per barrel a day earlier.
    The gasoil spot discounts have more than doubled over the last one month.    
    Higher gasoil exports from China and India last month have added to an existing supply glut,
especially as lack of arbitrage opportunities are keeping the barrels trapped within the region,
trade sources said.
    India's gasoil exports this month are expected to close slightly higher than August, while
Chinese exports would likely remain elevated through the fourth quarter, Refinitiv oil research
assessments showed.
    The exchange of futures for swaps (EFS), which determines the gasoil price spread between
Singapore and Northwest Europe, traded around minus 92 cents per tonne on Friday,
typically making it unworkable for arbitrage shipments.
    Arbitrage is usually profitable when the EFS trades at about minus $15 a tonne or below,
though it also depends on other factors such as freight rates, according to traders.
    Refining profit margins for 10 ppm gasoil, which have dropped about 27% this
week, were up 18 cents on Friday at $2.15 a barrel over Dubai crude during Asian trading hours.
    - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA dropped 5.5% to 2.8 million tonnes in the week to Sept. 24, data from
Dutch consultancy Insights Global showed.
    - The data showed ARA jet fuel inventories fell STK-JET-ARA 1.7% to 938,000 tonnes.
    - Compared with a year earlier, ARA gasoil inventories were down 0.2%, while jet fuel stocks
were 43% higher.
    - No gasoil deals, no jet fuel trades

    - Crude oil processed by Indian refiners slipped 26.4% from a year ago in August, the most
in four months, as fuel demand remained subdued on sky-rocketing coronavirus cases that hindered
industrial and transport activity.
    - Oil prices edged higher on Friday but were set for a weekly decline due to increasing
concerns about the impact on fuel demand of a widespread resurgence in coronavirus infections,
as well as some concern about the likely return of exports from Libya.
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               42.39     0.99       2.39       41.40  GO-SIN
 GO 0.5 Diff                     -1.95     0.07      -3.47       -2.02  GO-SIN-DIF
 Spot Gas Oil 0.25%              42.64     0.99       2.38       41.65  GO25-SIN
 GO 0.25 Diff                    -1.70     0.07      -3.95       -1.77  GO25-SIN-DIF
 Spot Gas Oil 0.05%              43.09     0.99       2.35       42.10  GO005-SIN
 GO 0.05 Diff                    -1.25     0.07      -5.30       -1.32  GO005-SIN-DIF
 Spot Gas Oil 0.001%             43.68     0.89       2.08       42.79  GO10-SIN
 GO 0.001 Diff                   -0.66    -0.03       4.76       -0.63  GO10-SIN-DIF
 Spot Jet/Kero                   40.99     1.44       3.64       39.55  JET-SIN
 Jet/Kero Diff                   -1.05     0.07      -6.25       -1.12  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 Krishna Chandra Eluri)