SINGAPORE, July 1 (Reuters) - Asia's cash premiums for 10 ppm gasoil slipped on Wednesday, hurt by muted buying interest for physical cargoes, while traders were concerned regional refiners returning from turnarounds and ramping up production would dampen the market that is already grappling with supplies. Cash premiums for 10-ppm gasoilfell to 73 cents a barrel to Singapore quotes on Wednesday, down from 88 cents per barrel a day earlier. Gasoil demand should get a boost in the third quarter as more countries ease coronavirus-related restrictions and industrial activity picks up pace, but market tightness would be disrupted by increasing supply volumes, market watchers said. "The relative resilience in refinery runs through the weakest demand period has resulted in sizeable baggage of product inventories," said Kostantsa Rangelova, head of downstream at JBC Energy. Refining margins, also known as cracks, for gasoil with 10-ppm sulphur content were at $6.84 a barrel over Dubai crude during Asian trading hours, compared with Tuesday's $6.16 per barrel. Improving demand would bolster the cracks to an extent, but they are still expected to remain at historically weak levels, industry analysts said. The region's gasoil surplus in the second half the year is expected to average at 840,000 barrels per day (bpd), down just by 300,000 bpd compared to the first half of the year, according to estimates by energy consultant FGE. INVENTORIES - Middle-distillate inventories in the Fujairah Oil Industry Zone dropped 19.1% to 4.1 million barrels in the week ended June 29, data via S&P Global Platts showed. - The weekly stocks in Fujairah have averaged 3.9 million barrels so far in 2020, compared with a weekly average of 2.4 million barrels in 2019, Reuters calculations showed. - Meanwhile, U.S. distillate fuel inventories rose by 2.6 million barrels, compared with expectations for a decrease of 393,000 barrels, data from industry group the American Petroleum Institute (API) showed on Tuesday. SINGAPORE CASH DEALS - No jet fuel trades, no gasoil deals ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 47.43 0.97 2.09 46.46 GO 0.5 Diff -0.98 -0.14 16.67 -0.84 Spot Gas Oil 0.25% 48.07 0.97 2.06 47.10 GO 0.25 Diff -0.34 -0.14 70.00 -0.20 Spot Gas Oil 0.05% 48.96 1.03 2.15 47.93 GO 0.05 Diff 0.55 -0.09 -14.06 0.64 Spot Gas Oil 0.001% 49.15 0.97 2.01 48.18 GO 0.001 Diff 0.73 -0.15 -17.05 0.88 Spot Jet/Kero 43.51 1.66 3.97 41.85 Jet/Kero Diff -0.64 0.03 -4.48 -0.67 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 Ramakrishnan M.)
Our Standards: The Thomson Reuters Trust Principles.