Asia Distillates-Gasoil cracks drop despite weaker crude

    SINGAPORE, June 7 (Reuters) - Asian refining margins for 10 ppm gasoil slipped on Monday
despite weaker raw material crude prices, as ongoing mobility restrictions in several markets
continued to weigh on sentiment.
    Refining margins, also known as cracks, for 10 ppm gasoil were at $8.53 per
barrel over Dubai crude during Asian trading hours, 21 cents lower from Friday.
    The regional gasoil market is expected to grapple with strong supplies in the near term as
the overall pace of demand recovery remains sluggish, and the monsoon season typically hurts
consumption in key markets such as India and Vietnam, trade sources said.
    India's gasoil exports rebounded to 2.58 million tonnes in May, about 39% higher compared
with April volumes, Refinitiv Oil Research assessments showed. 
    The monsoon season in India typically runs from June to September, when heavy rainfall and
floods in different parts of the country tend to dent demand for the transportation fuel.
    Cash discounts for gasoil with 10 ppm sulphur content GO10-SIN-DIF remained unchanged at 7
cents per barrel to Singapore quotes on Monday.
    The June/July time spread for the benchmark gasoil grade in Singapore
narrowed its backwardation to trade at 5 cents per barrel.
    - China's crude oil imports fell 14.6% in May from a high base a year earlier, with daily
arrivals hitting the lowest level this year, as maintenance at refineries limited consumption of
the resource.
    - But refinery utilisation rates are expected to rebound in coming months as refineries
resume operations, analysts said.
    - May arrivals were 40.97 million tonnes, data released by the General Administration of
Customs showed, equivalent to 9.65 million barrels per day (bpd). That compares to 9.82 million
bpd in April and 11.3 million bpd in May last year when Chinese buyers snapped up cheap oil amid
the spread of the coronavirus.
    - Two gasoil trades, no jet fuel deals
    - Oil eased after hitting a two-year high above $72 a barrel on Monday, pressured by the
prospect of higher Iranian exports though recovering demand and OPEC+ supply curbs provided
underlying support.
    - Global commodities trader Trafigura             and Norway's Yara said they had
signed a memorandum of understanding (MoU) aiming to supply the marine industry with carbon
emissions-free ammonia for fuel.
 CASH ($/T)                     ASIA CLOSE     Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                       74.9    -0.32      -0.43       75.22  GO-SIN
 GO 0.5 Diff                            -2.59     0.02      -0.77       -2.61  GO-SIN-DIF
 Spot Gas Oil 0.25%                     75.11    -0.32      -0.42       75.43  GO25-SIN
 GO 0.25 Diff                           -2.38     0.02      -0.83        -2.4  GO25-SIN-DIF
 Spot Gas Oil 0.05%                     75.22    -0.32      -0.42       75.54  GO005-SIN
 GO 0.05 Diff                           -2.27     0.02      -0.87       -2.29  GO005-SIN-DIF
 Spot Gas Oil 0.001%                    77.42    -0.34      -0.44       77.76  GO10-SIN
 GO 0.001 Diff                          -0.07        0       0.00       -0.07  GO10-SIN-DIF
 Spot Jet/Kero                          74.06    -0.33      -0.44       74.39  JET-SIN
 Jet/Kero Diff                          -0.45     0.05     -10.00        -0.5  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 Subhranshu Sahu)