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Asia Distillates-Gasoil cracks post biggest weekly drop in over 2-1/2 months

    SINGAPORE, Jan 8 (Reuters) - Asian gasoil refining margins rose on Friday, but remained
within close sight of a multi-week low touched in the previous session, as expectations for
ample near-term supplies and concerns over sluggish demand recovery weighed on the industrial
fuel market.
    Refining profit margins, also known as cracks, for 10 ppm gasoil were at $5.25
a barrel over Dubai crude during Asian trading hours, compared with a more than six-week low of
$4.74 per barrel a day earlier.
    The cracks have shed 13.8% this week, the steepest weekly decline since Oct. 23, Refinitiv
Eikon data showed. 
    China has raised its first batch of refined fuel export quotas by 5.4% year-on-year, which
would likely prompt strong gasoil exports from the country, while lack of arbitrage
opportunities are expected to keep supplies locked within the region, market watchers said.

    The exchange of futures for swaps (EFS), which determines the gasoil price spread between
Singapore and Northwest Europe, traded at minus $3 per tonne on Friday, typically
making it unworkable for east-west arbitrage shipments. 
    India's gasoil exports rose to 2.35 million tonnes in December from 2.1 million tonnes in
November, and with strong refinery rates amid lacklustre domestic demand, the country is
expected to keep exports elevated over the first quarter, according to Refinitiv oil research
assessments.
    
    ARA STOCKS
    - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA rose 1.6% to 2.6 million tonnes in the week to Jan. 7, data from Dutch
consultancy Insights Global showed.
    - The data showed ARA jet fuel inventories STK-JET-ARA dropped 10% to 948,000 tonnes.
    - Compared with a year earlier, ARA gasoil inventories have risen 2.1%, while jet fuel
stocks were 68.4% higher.
    
    TENDERS
    - India's Mangalore Refinery and Petrochemicals Ltd (MRPL) was offering 40,000 tonnes of jet
fuel for Feb. 10-12 loading from the port of New Mangalore. The tender closes on Jan. 13 and has
a same-day validity.
    
    SINGAPORE CASH DEALS
    - Three gasoil deals, one jet fuel trade

    OTHER NEWS
    - Severe mobility restrictions across Europe to contain a new surge in COVID-19 cases
weighed on fuel sales, weakening the prospect of energy demand recovery in the first half of
2021.
    
    ASSESSMENTS    
 MID-DISTILLATES                                                                       
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               57.82      0.7       1.23       57.12  GO-SIN
 GO 0.5 Diff                     -1.56     0.01      -0.64       -1.57  GO-SIN-DIF
 Spot Gas Oil 0.25%              57.92      0.7       1.22       57.22  GO25-SIN
 GO 0.25 Diff                    -1.46     0.01      -0.68       -1.47  GO25-SIN-DIF
 Spot Gas Oil 0.05%              58.02      0.7       1.22       57.32  GO005-SIN
 GO 0.05 Diff                    -1.36     0.01      -0.73       -1.37  GO005-SIN-DIF
 Spot Gas Oil 0.001%             59.09     0.78       1.34       58.31  GO10-SIN
 GO 0.001 Diff                   -0.28      0.1     -26.32       -0.38  GO10-SIN-DIF
 Spot Jet/Kero                   58.13     1.26       2.22       56.87  JET-SIN
 Jet/Kero Diff                   -0.12     0.04     -25.00       -0.16  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 Uttaresh.V)
  
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