Asia Distillates-Gasoil cracks dip amid concerns over ample supplies

    SINGAPORE, Dec 30 (Reuters) - Asian refining margins for 10 ppm gasoil slipped on Wednesday,
weighed down by concerns that near-term supplies on the back of high regional refinery runs
would weaken market fundamentals.
    Although gasoil demand has improved in recent weeks, renewed lockdown measures in several
markets to contain a new variant of the coronavirus are expected to dampen the pace of recovery
in coming weeks, market watchers said.
    Refining margins, also known as cracks, for 10 ppm gasoil were at $6.21 a
barrel over Dubai crude during Asian trading hours, down from $6.53 per barrel a day earlier.
    Cracks for the benchmark gasoil grade in Singapore have gained 17.6% in the past month, but
they are still currently about 57% lower than their seasonal average for this time of the year,
Refinitiv Eikon data showed.
    The front-month time spread for 10 ppm gasoil in Singapore, which has
narrowed its contango by nearly 70% this month, traded at a discount of 15 cents per barrel on
    The flattening contango structure would encourage traders to liquidate gasoil stocks from
storages, putting pressure on the market and capping any major upside for the refining profits
in the first half of 2021, industry analysts said.
    - Middle-distillate inventories in the Fujairah Oil Industry Zone dropped 8.2% to 5.03
million barrels in the week ended Dec. 28, data via S&P Global Platts showed.
    - The weekly stocks in Fujairah have averaged 4.2 million barrels so far in 2020, compared
with the weekly average of 2.4 million barrels in 2019, Reuters calculations showed.
    - U.S. distillate stockpiles fell by 1.9 million barrels in the week to Dec. 25, counter to
expectations for a build of 529,000 barrels, data from industry group the American Petroleum
Institute (API) showed on Tuesday.
    - No gasoil deals, no jet fuel trades
    - Oil gained ground on Wednesday as a U.S. coronavirus fiscal aid package and a decline in
crude oil inventories lifted prices.
    - Chinese tourists, millions of whom have shunned overseas travel this year because of the
global pandemic, are further narrowing the scope of their journeys, visiting nearby cities and
avoiding trips out of their provinces.
 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                 55.66    -0.23      -0.41       55.89  GO-SIN
 GO 0.5 Diff                       -1.48    -0.04       2.78       -1.44  GO-SIN-DIF
 Spot Gas Oil 0.25%                55.76    -0.23      -0.41       55.99  GO25-SIN
 GO 0.25 Diff                      -1.38    -0.04       2.99       -1.34  GO25-SIN-DIF
 Spot Gas Oil 0.05%                55.86    -0.23      -0.41       56.09  GO005-SIN
 GO 0.05 Diff                      -1.28    -0.04       3.23       -1.24  GO005-SIN-DIF
 Spot Gas Oil 0.001%               57.01    -0.25      -0.44       57.26  GO10-SIN
 GO 0.001 Diff                     -0.13    -0.06      85.71       -0.07  GO10-SIN-DIF
 Spot Jet/Kero                     55.46     -0.2      -0.36       55.66  JET-SIN
 Jet/Kero Diff                     -0.06        0       0.00       -0.06  JET-SIN-DIF
 For a list of derivatives prices, including margins, please                             
 double click the RICs below.                                             
 Brent M1                                                                                
 Gasoil M1                                                                               
 Gasoil M1/M2                                                                            
 Gasoil M2                                                                               
 Regrade M1                                                                              
 Regrade M2                                                                              
 Jet M1                                                                                  
 Jet M1/M2                                                                               
 Jet M2                                                                                  
 Gasoil 500ppm-Dubai                                                                     
 Cracks M1                                                                
 Gasoil 500ppm-Dubai                                                                     
 Cracks M2                                                                
 Jet Cracks M1                                                                           
 Jet Cracks M2                                                                           
 East-West M1                                                                            
 East-West M2                                                                            
 LGO M1                                                                                  
 LGO M1/M2                                                                               
 LGO M2                                                                                  
 Crack LGO-Brent M1                                                                      
 Crack LGO-Brent M2                                                                      
 (Reporting by Koustav Samanta; Editing by Aditya Soni)


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