SINGAPORE, July 21 (Reuters) - Asian refining margins for 10 ppm gasoil climbed to their strongest in more than a month on Tuesday, while cash premiums for the transportation fuel inched higher, thanks to a stronger deal in the physical market. Trade sources said the gasoil market is getting support as lower rates at some refineries have helped cut excess supplies from the region, but the ongoing new wave of coronavirus infections will deter any sustainable demand recovery in the near term. Refining margins or cracks for gasoil with 10 ppm sulphur content rose 60 cents to $7.22 a barrel over Dubai crude during Asian trading hours, the highest level since June 18. The cracks, however, might lose steam over the next few weeks as India and China are expected to export higher gasoil volumes this month, compared with June, market watchers said. Diesel demand typically takes a hit during monsoon months in some parts of the region as heavy rainfall and floods curtail demand for the transportation fuel. Large parts of China are currently reeling from the worst floods in decades, while intense rain and floods have swamped large parts of India's densely populated eastern states. Cash premiums for 10 ppm gasoilwere at 70 cents a barrel to Singapore quotes on Tuesday, up 1 cent from a day earlier. A gradual uptick in economic activities would likely support gasoil demand in the coming months, but downside risks remain high, industry analysts said. SOUTHEAST ASIA BUDGET AIRLINE BOOM TURNS SOUR - Southeast Asian low-cost carriers, a key growth engine for planemakers and leasing companies for a decade before the pandemic, are faltering financially as demand plunges, raising questions over whether they can replace and double their fleets. - Auditors for Malaysia's AirAsia Group Bhd and Vietnam's VietJet Aviation JSC are concerned about cashflows and funding, while Indonesia's Lion Air has put the brakes on a planned flotation. SINGAPORE CASH DEALS - One gasoil deal, no jet fuel trades OTHER NEWS - Oil prices rose on Tuesday, helped by positive news about vaccine trials and a European Union stimulus deal reaching levels last seen when an oil price war erupted in early March between Russia and Saudi Arabia. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 49.25 1.57 3.29 47.68 GO 0.5 Diff -0.89 0.01 -1.11 -0.90 Spot Gas Oil 0.25% 49.89 1.57 3.25 48.32 GO 0.25 Diff -0.25 0.01 -3.85 -0.26 Spot Gas Oil 0.05% 50.70 1.57 3.20 49.13 GO 0.05 Diff 0.56 0.01 1.82 0.55 Spot Gas Oil 0.001% 50.84 1.58 3.21 49.26 GO 0.001 Diff 0.70 0.01 1.45 0.69 Spot Jet/Kero 45.14 1.53 3.51 43.61 Jet/Kero Diff -0.41 -0.04 10.81 -0.37 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 Devika Syamnath)
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