Asia Distillates Gasoil cash premiums post biggest weekly slide in over 3 months

  • 11/19/2021
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SINGAPORE, Nov 19 (Reuters) - Asia"s cash premiums for 10 ppm gasoil slipped for a sixth consecutive session on Friday, posting their steepest weekly decline in more than three months, weighed down by ample supplies from India and South Korea. Cash premiums for gasoil with 10 ppm sulphur content plunged to 45 cents per barrel to Singapore quotes, their lowest since Oct. 14. The differentials, which were at a 49-cent premium on Thursday, has fallen about 38% this week. India"s diesel exports this month are expected to close above October"s total of 2.07 million tonnes, while exports from South Korea would likely close around last month"s total of 2.32 million tonnes, Refinitiv Oil Research assessments showed. Refining margins or cracks for 10 ppm gasoil dropped to $11.98 per barrel over Dubai crude during Asian trading hours. They were at $12.20 per barrel a day earlier, and have shed 8% this week. A recent spike in China"s COVID-19 infections has kindled concerns over short-term demand in the world"s second biggest oil consumer, but some traders believe the domestic market will remain tight in coming months. "Despite the recent lockdowns, the Chinese government would likely ensure the domestic markets are well supplied, especially ahead of the Winter Olympics (in Beijing) and the upcoming Chinese New Year," a Singapore-based gasoil trader said. "The Asian gasoil cracks seem to come to the ground for the last few days. So, I reckon probably they might still see some pressure before recovering," he added. VACCINATED FOREIGN TOURISTS - The Philippines has approved a plan to allow entry soon to foreign tourists vaccinated against COVID-19, its tourism ministry said on Friday, following moves by other Southeast Asian countries to relax travel curbs. read more - Singapore is hosting top executives of big global companies this week at a host of conferences, marking its gradual return to normalcy and underscoring the contrast with long-time rival Hong Kong, which is sticking with some of the toughest quarantine rules in the world. read more ARA INVENTORIES - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose 1.7% to 1.9 million tonnes in the week ended Nov. 18, according to Dutch consultancy Insights Global. - ARA jet fuel inventories dropped 1.8% this week to 835,000 tonnes. SINGAPORE CASH DEALS - No gasoil trades, no jet fuel deals OTHER NEWS - Asia"s spot crude market has peaked after touching near two-year highs this week, as a possible release of oil reserves from top consumers globally dented sentiment and weighed on prices, trade sources said on Thursday. read more - China"s Shandong province has ordered its refineries, including three plants under state-run Sinochem Holdings, to self-inspect and self-rectify any irregular fuel tax practices, a document reviewed by Reuters on Thursday showed. read more

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