SINGAPORE, Jan 15 (Reuters) - Asian refining margins for 10 ppm gasoil climbed on Wednesday, partly due to a dip in raw material crude prices, while cash premiums for the industrial fuel dropped amid weaker buying interest for physical cargoes. Refining margins or cracks for gasoil with 10 ppm sulphur content rose to $13.13 per barrel over Dubai crude during Asian trading hours on Wednesday, compared with an over 8-month low of $12.84 per barrel on Tuesday. Crude oil prices slipped on Wednesday amid concerns that the pending Phase 1 trade deal between the United States and China, the world's biggest oil users, may not boost demand as Washington intends to keep tariffs on Chinese goods until a second phase. Cash premiums for 10 ppm gasoilwere at 29 cents per barrel over Singapore quotes on Wednesday, down from 36 cents per barrel a day earlier. The January/February time spread for 10 ppm gasoil narrowed on Wednesday to trade at a premium of 11 cents per barrel, compared with 33 cents a barrel in the previous session, Refinitiv Eikon data showed. WARM WINTER, WEAK AVIATION HURT JET FUEL CRACKS - Asian refining profit margins for jet fuel have slumped to their lowest in more than eight months, weighed down by weak aviation demand and a drop in the use of heating oil due to a warm winter in Northeast Asia. - Milder winter temperatures this year have kept a lid on the usual demand uptick from heating for kerosene, which belongs to the same grade of oil products as jet fuel, especially in Japan. - Refining profits for the aviation fuel were at $12.57 per barrel over Dubai crude on Wednesday, compared with $11.87 per barrel on Tuesday, their lowest since April 30 last year. - Margins for jet fuel are currently at their weakest levels for this time of the year since 2016, Refinitiv data showed. - Temperatures in Tokyo are forecast to remain mostly above normal for the next 45-day period, weather forecast models on Refinitiv showed. FUJAIRAH STOCKS - Middle-distillate inventories in the Fujairah Oil Industry Zone rose 17.9% from a week earlier to 4.3 million barrels in the week to Jan. 13, data via S&P Global Platts showed. - Stocks of middle distillates in the Fujairah oil hub averaged 2.4 million barrels in 2019, compared with a weekly average of 2.8 million barrels in 2018, Reuters calculations showed. - Weekly Fujairah middle distillate stocks have more than doubled, when compared with year-ago levels. API INVENTORY DATA - U.S. crude oil stocks rose in the most recent week while gasoline and distillate inventories also climbed, data from industry group the American Petroleum Institute showed on Tuesday. - Crude inventories rose by 1.1 million barrels in the week to Jan. 10, to 431.4 million barrels, compared with analysts' expectations for a draw of 474,000 barrels. - Distillate fuel inventories, which include diesel and heating oil, rose by 6.8 million barrels, compared with expectations for a 1.2 million-barrel increase, the data showed. SINGAPORE CASH DEALS - Two jet fuel trades, two gasoil deals. - For more information, click OTHER NEWS - The U.S.-China trade war is set to enter a new, quieter phase on Wednesday as U.S. President Donald Trump and Chinese Vice Premier Liu He sign an initial trade deal that aims to vastly increase Chinese purchases of U.S. manufactured products, agricultural goods, energy and services. - Key OPEC countries and their allies have begun discussing a delay until June of a decision on extending a deal to cut output, Russia's TASS news agency said on Wednesday, citing an unnamed source. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 73.99 -0.04 -0.05 74.03 GO 0.5 Diff -2.06 0.01 -0.48 -2.07 Spot Gas Oil 0.25% 74.70 -0.04 -0.05 74.74 GO 0.25 Diff -1.35 0.01 -0.74 -1.36 Spot Gas Oil 0.05% 75.84 -0.15 -0.20 75.99 GO 0.05 Diff -0.21 -0.10 90.91 -0.11 Spot Gas Oil 0.001% 76.34 -0.12 -0.16 76.46 GO 0.001 Diff 0.29 -0.07 -19.44 0.36 Spot Jet/Kero 75.56 0.30 0.40 75.26 Jet/Kero Diff 0.11 -0.07 -38.89 0.18 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 Aditya Soni)
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