SINGAPORE, Feb 4 (Reuters) - Asian gasoil cracks dipped on Thursday, but remained within close sight of a multi-month high touched in the previous session, buoyed by reviving industrial demand and expectations of a tighter market in coming months as regional refineries enter spring turnaround season.
Refining margins, also known as cracks, for 10 ppm gasoil GO10SGCKMc1 slipped to $6.37 a barrel over Dubai crude during Asian trading hours, weighed down by firmer feedstock crude prices. The cracks hit a more than six-month high of $6.61 per barrel on Wednesday.
"We expect most economies in Asia-Pacific to regain their growth trajectory and Q1 2021 demand to strengthen versus the previous quarter," said Max van der Velden, principal analyst at consultancy Wood Mackenzie.
"We expect that the combination of the vaccine rollouts and countries being better prepared against new waves of the virus would enable markets to rebound quickly from any lockdowns," he added.
Cash differentials for gasoil with 10 ppm sulphur content GO10-SIN-DIF flipped back to a narrow discount of 2 cents a barrel to Singapore quotes, compared with a 1-cent premium a day earlier.
INVENTORIES
- Singapore's middle distillate inventories rose 0.5% to 14.2 million barrels in the week to Feb. 3, according to Enterprise Singapore data. O/SING1
- Weekly Singapore middle distillate inventories have averaged 14.5 million barrels so far this year, compared with an average of 13.9 million barrels in 2020, Reuters calculations showed. This week's stocks were 32.4% higher than a year ago.
- U.S. distillate stockpiles fell by 9,000 barrels in the week to Jan. 29, the Energy Information Administration said on Wednesday, compared with analysts' expectations in a Reuters poll for a 429,000-barrel drop. EIA/S
SINGAPORE CASH DEALS O/AS
- One gasoil deal, no jet fuel trades
OTHER NEWS
- India's oil minister Dharmendra Pradhan warned on Thursday that rising oil prices could hurt global economic recovery in the aftermath of the COVID-19 pandemic that caused most economies to shrink last year. Oil prices extended gains on Thursday after the OPEC+ alliance of major producers stuck to a reduced output policy, and as crude stockpiles in the United States fell to their lowest levels since March last year. O/R
ASSESSMENTS MID-DISTILLATES
CASH ($/T)
ASIA CLOSE
Change % Change Prev Close RIC Spot Gas Oil 0.5%
62.89
0.64
1.03
62.25 GO-SIN GO 0.5 Diff
-1.55
0.07
-4.32
-1.62 GO-SIN-DIF Spot Gas Oil 0.25%
62.99
0.64
1.03
62.35 GO25-SIN GO 0.25 Diff
-1.45
0.07
-4.61
-1.52 GO25-SIN-DIF Spot Gas Oil 0.05%
63.26
0.64
1.02
62.62 GO005-SIN GO 0.05 Diff
-1.18
0.07
-5.60
-1.25 GO005-SIN-DIF Spot Gas Oil 0.001%
64.42
0.54
0.85
63.88 GO10-SIN GO 0.001 Diff
-0.02
-0.03
-300.00
0.01 GO10-SIN-DIF Spot Jet/Kero
61.81
0.58
0.95
61.23 JET-SIN Jet/Kero Diff
-0.21
-0.1
90.91
-0.11 JET-SIN-DIF
For a list of derivatives prices, including margins,
please double click the RICs below.
Brent M1
BRENTSGMc1
Gasoil M1
GOSGSWMc1
Gasoil M1/M2
GOSGSPDMc1
Gasoil M2
GOSGSWMc2
Regrade M1
JETREGSGMc1
Regrade M2
JETREGSGMc2
Jet M1
JETSGSWMc1
Jet M1/M2
JETSGSPDMc1
Jet M2
JETSGSWMc2
Gasoil 500ppm-Dubai
GOSGCKMc1
Cracks M1
Gasoil 500ppm-Dubai
GOSGCKMc2
Cracks M2
Jet Cracks M1
JETSGCKMc1
Jet Cracks M2
JETSGCKMc2
East-West M1
LGOAEFSMc1
East-West M2
LGOAEFSMc2
LGO M1
LGOAMc1
LGO M1/M2
LGOASPDMc1
LGO M2
LGOAMc2
Crack LGO-Brent M1
LGOACKMc1
Crack LGO-Brent M2
LGOACKMc2