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Asia Distillates-Gasoil cracks post biggest weekly drop in over 2-1/2 months

Published 2021-01-08, 05:55 a/m
© Reuters.

SINGAPORE, Jan 8 (Reuters) - Asian gasoil refining margins rose on Friday, but remained within close sight of a multi-week low touched in the previous session, as expectations for ample near-term supplies and concerns over sluggish demand recovery weighed on the industrial fuel market.

Refining profit margins, also known as cracks, for 10 ppm gasoil GO10SGCKMc1 were at $5.25 a barrel over Dubai crude during Asian trading hours, compared with a more than six-week low of $4.74 per barrel a day earlier.

The cracks have shed 13.8% this week, the steepest weekly decline since Oct. 23, Refinitiv Eikon data showed.

China has raised its first batch of refined fuel export quotas by 5.4% year-on-year, which would likely prompt strong gasoil exports from the country, while lack of arbitrage opportunities are expected to keep supplies locked within the region, market watchers said. exchange of futures for swaps (EFS), which determines the gasoil price spread between Singapore and Northwest Europe LGOAEFSMc1 , traded at minus $3 per tonne on Friday, typically making it unworkable for east-west arbitrage shipments.

India's gasoil exports rose to 2.35 million tonnes in December from 2.1 million tonnes in November, and with strong refinery rates amid lacklustre domestic demand, the country is expected to keep exports elevated over the first quarter, according to Refinitiv oil research assessments.

ARA STOCKS

- Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub STK-GO-ARA rose 1.6% to 2.6 million tonnes in the week to Jan. 7, data from Dutch consultancy Insights Global showed. ARA/

- The data showed ARA jet fuel inventories STK-JET-ARA dropped 10% to 948,000 tonnes.

- Compared with a year earlier, ARA gasoil inventories have risen 2.1%, while jet fuel stocks were 68.4% higher.

TENDERS MDIS/A

- India's Mangalore Refinery and Petrochemicals Ltd (MRPL) was offering 40,000 tonnes of jet fuel for Feb. 10-12 loading from the port of New Mangalore. The tender closes on Jan. 13 and has a same-day validity.

SINGAPORE CASH DEALS O/AS

- Three gasoil deals, one jet fuel trade

OTHER NEWS

- Severe mobility restrictions across Europe to contain a new surge in COVID-19 cases weighed on fuel sales, weakening the prospect of energy demand recovery in the first half of 2021. ($/T)

ASIA CLOSE

Change % Change Prev Close RIC Spot Gas Oil 0.5%

57.82

0.7

1.23

57.12 GO-SIN GO 0.5 Diff

-1.56

0.01

-0.64

-1.57 GO-SIN-DIF Spot Gas Oil 0.25%

57.92

0.7

1.22

57.22 GO25-SIN GO 0.25 Diff

-1.46

0.01

-0.68

-1.47 GO25-SIN-DIF Spot Gas Oil 0.05%

58.02

0.7

1.22

57.32 GO005-SIN GO 0.05 Diff

-1.36

0.01

-0.73

-1.37 GO005-SIN-DIF Spot Gas Oil 0.001%

59.09

0.78

1.34

58.31 GO10-SIN GO 0.001 Diff

-0.28

0.1

-26.32

-0.38 GO10-SIN-DIF Spot Jet/Kero

58.13

1.26

2.22

56.87 JET-SIN Jet/Kero Diff

-0.12

0.04

-25.00

-0.16 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

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