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Asia Distillates-Gasoil cash differentials slump to over 3-month low

    SINGAPORE, Sept 1 (Reuters) - Asia's cash differentials for 10 ppm gasoil dropped on
Tuesday, slumping to their weakest level in more than three months, hurt by persistent weakness
in buying interest for physical cargoes in a market grappling with abundant supplies.
    Cash differential for 10 ppm gasoil GO10-SIN-DIF were at a discount of 50 cents a barrel
to Singapore quotes, the widest since May 28. They were at a discount of 48 cents per barrel a
day earlier.
    Lack of arbitrage opportunities and weaker domestic demand in key markets due to
coronavirus-led lockdown measures are the primary factors weighing down the regional gasoil
market, trade sources said.
    Refining profit margins or cracks for 10 ppm gasoil were at $4.31 a barrel
over Dubai crude during Asian trading hours, compared with $4.08 per barrel on Monday.
    Cracks for the benchmark gasoil grade in Singapore, which have shed 23.7% over the last two
weeks, are currently more than 70% lower than the historical average for this time of the year,
Refinitiv Eikon data showed.
    The September/October time spread for 10 ppm gasoil traded at a discount of
54 cents a barrel on Tuesday.
    
    S.KOREA IMPORTS OIL FROM CHINA STORAGE
    - South Korean refiners have bought nearly 2 million barrels of Omani crude from Chinese
storage tanks in the past two months, seldom seen trades created by low prices and high
inventories, according to trade sources and shipping data on Refinitiv Eikon.
    - The cargoes were among the first to be lifted from bonded storage tanks operated by
Shanghai's International Energy Exchange (INE) for delivery to South Korea, the sources said.
    
    SINGAPORE CASH DEALS
    - No gasoil deals, no jet fuel trades
    
    OTHER NEWS
    - Oil prices gained on Tuesday, reversing overnight losses, as investors moved into risk
assets and stayed away from the safe-haven U.S. dollar which hit multi-year lows.
    - Qantas Airways Ltd said on Tuesday it had issued A$500 million ($369.90 million)
of unsecured bonds with a coupon of 5.25% to help strengthen liquidity and replace maturing debt
as it deals with a plunge in demand due to the coronavirus pandemic.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                          
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close   RIC
 Spot Gas Oil 0.5%                46.89    -0.87      -1.82        47.76  GO-SIN
 GO 0.5 Diff                      -2.32    -0.02       0.87        -2.30  GO-SIN-DIF
 Spot Gas Oil 0.25%               47.09    -0.87      -1.81        47.96  GO25-SIN
 GO 0.25 Diff                     -2.12    -0.02       0.95        -2.10  GO25-SIN-DIF
 Spot Gas Oil 0.05%               47.29    -0.87      -1.81        48.16  GO005-SIN
 GO 0.05 Diff                     -1.92    -0.02       1.05        -1.90  GO005-SIN-DIF
 Spot Gas Oil 0.001%              48.71    -0.87      -1.75        49.58  GO10-SIN
 GO 0.001 Diff                    -0.50    -0.02       4.17        -0.48  GO10-SIN-DIF
 Spot Jet/Kero                    42.05    -0.95      -2.21        43.00  JET-SIN
 Jet/Kero Diff                    -1.20    -0.03       2.56        -1.17  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 Shailesh Kuber)
  
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