Asia Distillates-Gasoil refining margins dip on firmer crude

Asian refining margins for 10 ppm gasoil slipped on Monday

  

SINGAPORE- Asian refining margins for 10 ppm gasoil slipped on Monday as crude prices firmed, but traders said tighter regional supplies and recovering industrial demand would cap any major downside in the near term.

Refining margins, also known as cracks, for 10 ppm gasoil dipped for a sixth consecutive session on Monday to $13.84 per barrel over Dubai crude during Asian trading hours, down from $14.35 a barrel on Friday.

Cracks for the benchmark gasoil grade, however, were still holding slightly above $13.36, their five-year seasonal average for this time of the year, Refinitiv Eikon data showed.

Cash premiums for gasoil with 10 ppm sulphur content GO10-SIN-DIF were at 71 cents per barrel to Singapore quotes, compared with 77 cents per barrel at the end of last week.

SINGAPORE PLANS ELECTRICITY IMPORTS

- Singapore plans to import up to 4 gigawatts (GW) of low-carbon electricity by 2035, or about 30% of its total supply, trade and industry Minister Gan Kim Yong said on Monday, to diversify supply and boost energy security. 

- The Asian city-state will start with trials to resolve technical and regulatory issues over cross-border power trading, he said, such as plans to import 100 megawatts (MW) of electricity from neighbouring Malaysia and 100 MW of solar-generated electricity from Pulau Bulan in Indonesia.

ENERGY TRANSITION

- Australia's cabinet is expected to formally adopt a target for net-zero emissions by 2050 when it meets later on Monday to review a deal reached between parties in Prime Minister Scott Morrison's coalition government, official sources told Reuters. 

- Brunei aims to meet 30% of its overall power generation mix with renewable energy by 2035, Energy Minister Awang Haji Mat Suny bin Haji Md Hussein said on Monday, as the country aims to accelerate progress towards greener energy. 

SINGAPORE CASH DEALS

- No gasoil deals, no jet fuel trades

OTHER NEWS

- Indian refiners' crude oil throughput in September edged higher from the previous month, government data showed on Friday, as refineries boosted output to meet surging demand. 

- Oil prices extended pre-weekend gains on Monday to hit multi-year highs, lifted by tight global supply and strengthening fuel demand in the United States and beyond as economies recover from pandemic-induced slumps. 

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


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