SINGAPORE, Jan 3 (Reuters) - Asia's cash premiums for 10ppm gasoil rose on Friday, while refining profit margins for the transportation fuel gained 3% in the week after a global switch to cleaner marine fuels. From Jan. 1, the International Maritime Organization (IMO) has banned ships from using fuels with a sulphur content above 0.5%, compared with 3.5% earlier. This is expected to boost the gasoil market over the next few months, as a section of ship-owners opt for marine gasoil (MGO) to adhere with the new rules. Cash premiums for 10 ppm gasoilclimbed to 62 cents per barrel over Singapore quotes on Friday, up from a premium of 56 cents per barrel a day earlier. Refining margins, or cracks, for gasoil with 10 ppm sulphur content rose to $16.15 per barrel over Dubai crude during Asian trade on Friday, compared with $15.81 per barrel on Thursday. Cracks for the benchmark gasoil grade in Singapore have risen 3.1% this week, Refinitiv Eikon data showed. In order to meet the new sulphur cap on marine fuels, shippers so far have appeared to be favouring very low-sulphur fuel oil (VLSFO) mixes over distillate fuels. But testing companies examining the newer, low-sulphur marine blends acquired from major markets have found sediment at levels that could damage the engines of ocean-going vessels. "Sediment is a critical component, so blenders try to minimize potential sediment content. But if engine troubles are reported, many (VLSFO users) would move to the MGO pool," a Seoul-based trader said. Meanwhile, jet fuel cracks rose to $15.25 per barrel over Dubai crude on Friday, up from $15.09 a barrel on Thursday. Cash premiums for jet fuel were at 33 cents per barrel to Singapore quotes on Friday, compared with a 29-cent premium on Thursday. ARA STOCKS - Gasoil stocks independently held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose 3.5% to 2.5 million tonnes in the week to Jan. 2, data from Dutch consultancy Insights Global showed. - Gasoil inventories were up on imports from Russia, Insights Global's Lars van Wageningen said. The stocks were seasonally at their highest since 2015. - ARA jet fuel inventories fell 3.5% to 584,000 tonnes, the data showed. - Compared with a year earlier, jet fuel stocks were 0.7% higher, while gasoil inventories were up 21.7%. SINGAPORE CASH DEALS - No gasoil trades, one jet fuel deal. - For more information, click OTHER NEWS - Brent crude futures jumped nearly $3 on Friday to their highest since September after a U.S. air strike killed key Iranian and Iraqi military personnel, raising concerns that escalating Middle East tensions may disrupt oil supplies. - Venezuela has changed the formulas for calculating royalties energy companies pay the government to remove references to fuel oil and some crude grades, driven by stricter rules governing marine fuel emissions, according to a document seen by Reuters. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 80.91 2.17 2.76 78.74 GO 0.5 Diff -2.13 -0.03 1.43 -2.10 Spot Gas Oil 0.25% 81.54 2.17 2.73 79.37 GO 0.25 Diff -1.50 -0.03 2.04 -1.47 Spot Gas Oil 0.05% 82.80 2.11 2.61 80.69 GO 0.05 Diff -0.24 -0.09 60.00 -0.15 Spot Gas Oil 0.001% 83.66 2.26 2.78 81.40 GO 0.001 Diff 0.62 0.06 10.71 0.56 Spot Jet/Kero 82.38 2.18 2.72 80.20 Jet/Kero Diff 0.33 0.04 13.79 0.29 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 Maju Samuel)
Our Standards: The Thomson Reuters Trust Principles.