November 18, 2019 / 10:52 AM / 21 days ago

Asia Distillates-Gasoil cash premiums edge higher

    SINGAPORE, Nov 18 (Reuters) - Asia's cash premiums for 10 ppm gasoil rose Monday, buoyed by
a slight uptick in buying interest in the physical market.
    Cash premiums for gasoil with 10 ppm sulphur content GO10-SIN-DIF climbed to 34 cents per
barrel to Singapore quotes, compared with 31 cents per barrel on Friday.
    Slowing economic activity in major regional markets including India and China is taking a
toll on their respective domestic gasoil consumption, and that in turn is leading to a plenty of
supplies available in the region, trade sources said.
    Gasoil traders, however, are waiting for the shipping industry to ramp up their purchases of
marine gasoil (MGO) in the coming weeks, ahead of a switch to cleaner marine fuels staring next
year. 
    New regulations from the International Maritime Organization (IMO) require shippers to
reduce the sulphur content in fuels used in their vessels starting from Jan. 1, 2020, and one
way to do that is to switch to low-sulphur gasoil.
    Refining margins or crack spreads for 10 ppm gasoil dipped to $15.46 per
barrel over Dubai crude during Asian trading hours on Monday, down from Friday's $15.62 per
barrel.
    Meanwhile, jet fuel refining margins eased to $15.34 per barrel over Dubai
crude on Monday, 24 cents lower than Friday.
    Cash differentials for jet fuel JET-SIN-DIF remained unchanged at a discount of 60 cents
per barrel to Singapore quotes on Monday, with no bids or deals in the physical trade window.  
    
    SINGAPORE CASH DEALS
    - Two gasoil trades, no jet fuel deals.
    - Singapore trader Hin Leong sold two separate cargoes of 158,000 barrels of 10ppm gasoil
each to BP for Dec. 10-14 loading at a premium of 30 cents per barrel to December Singapore
quotes.
    - For more information, please click
    
    OTHER NEWS
    - Saudi Aramco is worth up to $1.7 trillion at the price range set by the oil giant on
Sunday, below the $2 trillion sought by Saudi's crown prince but putting it in the running to
become the world's biggest IPO. 
    The oil giant said it plans to sell 1.5% of the company, or about 3 billion shares, at an
indicative price range of 30 riyals to 32 riyals, valuing the IPO at as much as 96 billion
riyals ($25.6 billion) and giving the company a potential market value of between $1.6 trillion
and $1.7 trillion.
    - The Organization of the Petroleum Exporting Countries and its allies face stiffening
competition in 2020, the International Energy Agency said on Friday, adding urgency to the oil
producer group's policy meeting next month.
    - Oil prices were little changed on Monday following steady gains in the previous week with
investors awaiting fresh clues over prospects for a trade deal between the United States and
China, shrugging off concerns over steadily rising oil supplies.

    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               73.04     0.54       0.74       72.50  GO-SIN
 GO 0.5 Diff                     -3.46     0.03      -0.86       -3.49  GO-SIN-DIF
 Spot Gas Oil 0.25%              73.20     0.54       0.74       72.66  GO25-SIN
 GO 0.25 Diff                    -3.30     0.03      -0.90       -3.33  GO25-SIN-DIF
 Spot Gas Oil 0.05%              76.14     0.55       0.73       75.59  GO005-SIN
 GO 0.05 Diff                    -0.36     0.04     -10.00       -0.40  GO005-SIN-DIF
 Spot Gas Oil 0.001%             76.84     0.53       0.69       76.31  GO10-SIN
 GO 0.001 Diff                    0.34     0.03       9.68        0.31  GO10-SIN-DIF
 Spot Jet/Kero                   75.75     0.70       0.93       75.05  JET-SIN
 Jet/Kero Diff                   -0.60     0.00       0.00       -0.60  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 Anil D'Silva)
  
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