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 gasoil fell 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.)
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