February 28, 2020 / 10:59 AM / a month ago

Asia Distillates-Gasoil cracks post third straight weekly loss

    SINGAPORE, Feb 28 (Reuters) - Asian refining margins for 10 ppm gasoil climbed on Friday but
posted their third straight weekly decline amid growing fears of slowing demand for the
industrial and transportation fuel, as the coronavirus outbreak spreads rapidly outside China.
    The virus, which originated in China, has killed more than 2,700 people in the country, and
spread to 46 other countries, where 57 deaths have been reported. 
    Traders are concerned the outbreak could harm the global economy, inflicting further blows
to the regional gasoil market that is already struggling with lacklustre demand.
    Countries on three continents reported their first cases of the coronavirus on Friday, as
the world prepared for a pandemic and investors dumped equities in expectation of a global
    Refining margins, also known as cracks, for gasoil with 10 ppm sulphur content
rose to $9.39 per barrel over Dubai crude during Asian trading hours on Friday, up from a near
four-year low of $7.79 per barrel on Thursday.
    Cracks for the benchmark gasoil grade plunged about 10% this week, Refinitiv Eikon data
    Cash premiums for 10 ppm gasoil GO10-SIN-DIF were at 27 cents per barrel to Singapore
quotes on Friday, compared with a premium of 20 cents per barrel on Thursday.
    Meanwhile, cash differentials for jet fuel JET-SIN-DIF were at a discount of 1 cent per
barrel to Singapore quotes on Friday, against a discount of 7 cents on Thursday.
    Refining margins for jet fuel rose to $7.10 per barrel over Dubai crude on
Friday. They were at $6.04 per barrel on Thursday, the lowest since mid-2009.
    Cracks for the aviation fuel have shed about 13% this week.
    - Saudi Arabia, the world's top oil exporter, is reducing crude supplies to China in March
by at least 500,000 barrels per day (bpd) due to slower refinery demand following the
coronavirus outbreak, two sources with knowledge of the matter said.
    - The scale of the reduction underlines the drop in consumption caused by the outbreak in
the world's top oil importer. China normally takes 1.8 million bpd to 2 million bpd of Saudi
crude, the sources said.
    - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA dropped 6.1% to 2.1 million tonnes in the week to Feb. 27, data from
Dutch consultancy Insights Global showed.
    - ARA jet fuel inventories STK-JET-ARA were down 3.7% at 418,000 tonnes, the data showed.
    - Gasoil stocks fell as demand up the Rhine was stable, while jet fuel stocks fell to their
lowest since September 2014 as demand to store the product in the hub dwindled, said Insights
Global's Lars van Wageningen.
    - Compared with a year earlier, jet fuel stocks were 31.7% lower, while gasoil inventories
dropped 12%.

    - No gasoil trades, no jet fuel deals
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    - Indian refiners Reliance Industries and Nayara Energy are planning to wind down
purchases of Venezuelan oil in April, fearing future U.S. sanctions could choke off all avenues
to trade with state-run oil firm PDVSA, three sources with knowledge of the matter said.

    - Oil prices slumped to their lowest in more than a year on Friday and were set for their
steepest weekly fall in more than four years as the spread of the coronavirus stoked fears of
slowing global demand.
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                56.40    -0.17      -0.30       56.57  GO-SIN
 GO 0.5 Diff                      -1.94     0.07      -3.48       -2.01  GO-SIN-DIF
 Spot Gas Oil 0.25%               56.67    -0.17      -0.30       56.84  GO25-SIN
 GO 0.25 Diff                     -1.67     0.07      -4.02       -1.74  GO25-SIN-DIF
 Spot Gas Oil 0.05%               57.36    -0.17      -0.30       57.53  GO005-SIN
 GO 0.05 Diff                     -0.98     0.07      -6.67       -1.05  GO005-SIN-DIF
 Spot Gas Oil 0.001%              58.61    -0.17      -0.29       58.78  GO10-SIN
 GO 0.001 Diff                     0.27     0.07      35.00        0.20  GO10-SIN-DIF
 Spot Jet/Kero                    56.11    -0.79      -1.39       56.90  JET-SIN
 Jet/Kero Diff                    -0.01     0.06     -85.71       -0.07  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 Devika Syamnath)
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