Asia Distillates-Gasoil cracks hit 2-month high as crude slips

    SINGAPORE, May 3 (Reuters) - Asian refining margins for 10 ppm gasoil rose to their
strongest level in two months on Monday as feedstock crude prices fell, but traders were
concerned higher supplies emerging from India would likely weigh on the market in the coming
    Widespread COVID-19 lockdowns in India are expected to dent its domestic fuel demand this
month, resulting in higher product exports from the country, market watchers said.
    India on Monday reported more than 300,000 new coronavirus cases for a twelfth straight day,
while a leading Indian industry body urged authorities to take the "strongest national steps"
and to curtail economic activity to save lives on Sunday.
    Refining margins for 10 ppm gasoil climbed 28 cents to $7.53 per barrel over
Dubai crude during Asian trading hours, a level not seen since March 3.
    Regional refineries, returning from seasonal maintenance, would also add to existing
supplies, while scopes for arbitrage shipments to the West remain limited with Europe struggling
to clear its supply overhang, trade sources said.
    Cash discounts for 10 ppm gasoil GO10-SIN-DIF widened to 19 cents per barrel to Singapore
quotes, while the May/June time spread for the industrial fuel grade in Singapore widened its
contango structure to trade at minus 10 cents per barrel on Monday.
    - Indian state refiners' local fuel sales in April declined due to state-level restrictions
aimed at stemming a rampant second wave of coronavirus infections, preliminary data shows.

    - State retailers' fuel sales in April declined from their sales in March and April 2019
levels, while liquefied natural gas (LNG) cargoes are currently being diverted away from ports
in India.

    - One gasoil deal, no jet fuel trades
    - Oil dropped towards $66 a barrel on Monday as concern about demand in India and higher
OPEC+ supply offset optimism over a strong demand rebound in countries including the United
States and China.
 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                  69.3    -1.29      -1.83       70.59  GO-SIN
 GO 0.5 Diff                       -1.96    -0.02       1.03       -1.94  GO-SIN-DIF
 Spot Gas Oil 0.25%                69.45    -1.29      -1.82       70.74  GO25-SIN
 GO 0.25 Diff                      -1.81    -0.02       1.12       -1.79  GO25-SIN-DIF
 Spot Gas Oil 0.05%                69.66    -1.29      -1.82       70.95  GO005-SIN
 GO 0.05 Diff                       -1.6    -0.02       1.27       -1.58  GO005-SIN-DIF
 Spot Gas Oil 0.001%               71.07     -1.3      -1.80       72.37  GO10-SIN
 GO 0.001 Diff                     -0.19    -0.03      18.75       -0.16  GO10-SIN-DIF
 Spot Jet/Kero                      69.6    -1.31      -1.85       70.91  JET-SIN
 Jet/Kero Diff                     -0.18     0.01      -5.26       -0.19  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 Ramakrishnan M.)