Asia Distillates-Gasoil cash premiums linger near multi-month high

Asia's cash premiums for 10 ppm gasoil held close to their highest levels in 14 months on Thursday

  

SINGAPORE- Asia's cash premiums for 10 ppm gasoil held close to their highest levels in 14 months on Thursday, buoyed by tighter supplies, while Singapore middle distillate inventories slipped to a two-week low.

Cash differentials for gasoil with 10 ppm sulphur content GO10-SIN-DIF were at a premium of 48 cents per barrel to Singapore quotes, down slightly from Wednesday's 50 cents per barrel, a level last seen in July last year.

"Asian gasoil spreads have firmed steadily in recent weeks, as stronger time spreads and cash differentials reflect a more balanced market in Q4 21," consultancy Energy Aspects said in a note.

"Regional demand has not increased much since last month as Southeast Asia remains hard hit by mounting COVID-19 case counts, but China's clampdown on illicit LCO blenders, stringent environmental inspections and limited quotas have pinched gasoil exports for the last two months."

Refining margins, also known as cracks, for 10 ppm gasoil rose for a third straight session on Thursday to $10.85 per barrel over Dubai crude during Asian trading hours, a fresh high since March-end last year.

Cracks for the benchmark gasoil grade in Singapore, which were at $10.59 per barrel on Wednesday, have surged over 30% in the last month, Refinitiv Eikon data showed.

INVENTORIES

- Singapore's middle distillate inventories dipped 0.1% to 10.8 million barrels in the week to Sept. 22, according to Enterprise Singapore data. 

- Weekly Singapore middle distillate inventories have averaged 12.9 million barrels this year, compared with an average of 13.9 million barrels in 2020, Reuters calculations showed. This week's stocks were 30.7% lower than a year earlier.

- U.S. distillate inventories, which include diesel and heating oil, fell by 2.6 million barrels in the week to Sept. 17, versus expectations for a 1.2 million-barrel drop, the Energy Information Administration said on Wednesday. 

SINGAPORE CASH DEALS 

- No gasoil deals, no jet fuel trades

OTHER NEWS

- Oil prices extended gains on Thursday, riding higher on growing fuel demand and a bigger-than-expected draw in U.S. crude inventories as production remains hampered in the Gulf of Mexico after two hurricanes. 

- The White House is backing a plan by House of Representatives Democrats to let renewable energy firms form tax-advantaged partnerships that the oil and gas industry has used for decades to build out the U.S. pipeline and storage infrastructure, according to three people familiar with the matter. 

(Reporting by Koustav Samanta; Editing by Shailesh Kuber) ((koustav.samanta@thomsonreuters.com)( +65 6870 3503)(Reuters Messaging: koustav.samanta.thomsonreuters.com@reuters.net))


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