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Asia Distillates-Gasoil refining margins slump more than 20%

Asia Distillates-Gasoil refining margins slump more than 20%

Reuters · 09/14/2022 07:57
Asia Distillates-Gasoil refining margins slump more than 20%

- Asia's refining margins for gasoil with 10 ppm sulphur content slumped on Wednesday to hit an almost five-week low on expectations of higher exports from China.

Refining margins for 10 ppm gasoil GO10SGCKMc1 fell to $37.03 a barrel over Dubai crude in Asian trading hours, compared with $46.51 on Tuesday, declining more than 20%.

China is expected to release a fresh batch of export quotas equivalent to 1.5 million tonnes, local media reported.

Cash differentials for 10 ppm gasoil GO10-SIN-DIF stood at a premium of $1.87 a barrel to Singapore quotes, down from $2.28 in the previous session.

Amid tight middle distillate markets, demand growth for gasoil and jet/kerosene will be largely steady at 1.9% during the second half of the year, the International Energy Agency said in a monthly report.

For the OECD, diesel demand is set to tumble by 3.4% year-on-year due to the cooling economy, however, a 2.6% increase in -road gasoil demand and a 16.4% surge in jet/kerosene demand will more than counter this, the report added.


INVENTORIES

- Stocks of middle distillates at the Fujairah Oil Industry Zone rose by 21,000 barrels to a two-week high of 2.693 million barrels in the week to Sept. 12, S&P Global Commodity Insights data showed. FUJAIRAH/

- U.S. distillate stocks rose by about 1.8 million barrels in the week ended Sept. 9, market sources said, against expectations of an increase of about 600,000 barrels in a Reuters poll. API/S


SINGAPORE CASH DEALS O/AS

- Two gasoil trades, jet fuel deals.


OTHER NEWS

- Growth in global oil demand is set to grind to a halt in the fourth quarter of this year as an economic slowdown deepens, the International Energy Agency (IEA) said on Wednesday, but said it would resume strongly in 2023.

- Oil prices stabilised on Wednesday, after dropping by more than $1 earlier in the session, following signs of bullish demand in an International Energy Agency (IEA) report. O/R


ASSESSMENTS

MID-DISTILLATES






CASH ($/T)

ASIA CLOSE

Change

% Change

Prev Close

RIC

Spot Gas Oil 0.5%

121.72

-11.83

-8.86

133.55

GO-SIN

GO 0.5 Diff

-5.79

-0.18

3.21

-5.61

GO-SIN-DIF

Spot Gas Oil 0.25%

122.97

-11.83

-8.78

134.8

GO25-SIN

GO 0.25 Diff

-4.54

-0.18

4.13

-4.36

GO25-SIN-DIF

Spot Gas Oil 0.05%

123.78

-11.41

-8.44

135.19

GO005-SIN

GO 0.05 Diff

-3.74

0.23

-5.79

-3.97

GO005-SIN-DIF

Spot Gas Oil 0.001%

129.39

-12.05

-8.52

141.44

GO10-SIN

GO 0.001 Diff

1.87

-0.41

-17.98

2.28

GO10-SIN-DIF

Spot Jet/Kero

120.33

-11.94

-9.03

132.27

JET-SIN

Jet/Kero Diff

1.8

-0.67

-27.13

2.47

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 Cracks M1

GOSGCKMc1





Gasoil 500ppm-Dubai Cracks M2

GOSGCKMc2





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






(Reporting by Matthew Chye; Editing by Vinay Dwivedi)

((matthew.chye@thomsonreuters.com; Mobile: +65 91552300))