SINGAPORE, Feb 1 (Reuters) - Asia's cash differentials for 10 ppm gasoil rose on Monday to
their strongest in more than a month, backed by firmer buying interests for physical cargoes and
expectations for stronger industrial demand as COVID-19 restrictions ease gradually in coming
months.
The differentials for gasoil with 10 ppm sulphur content were at a discount
of 3 cents a barrel to Singapore quotes, the smallest discount since Dec. 28. They were at a
discount of 9 cents per barrel on Friday.
The regional gasoil market, however, might face some downward risks in the short-term as the
East-West arbitrage window remains shut amid weak European demand, and more export barrels from
India gets trapped within the Asian region, market watchers said.
Diesel flows from the Middle East to Asia were at around 871,000 tonnes in January, 15%
higher year-on-year, while India-Asia diesel flows were at about 900,000 tonnes, 67% higher
compared with a year ago, Refinitiv oil research assessments showed on Thursday.
The exchange of futures for swaps (EFS), which determines the gasoil price spread between
Singapore and Northwest Europe, traded at minus $6 per tonne on Monday – a level
that typically makes it unworkable for arbitrage shipments.
Arbitrage is usually profitable when the EFS trades at about minus $15 a tonne or below,
though it also depends on other factors such as freight rates, according to traders.
Refining margins, also known as cracks, for 10 ppm gasoil rose to $6.24 a
barrel over Dubai crude during Asian trading hours on Monday, up from $5.98 per barrel at the
end of last week.
FRESH WAVE OF COVID-19 HURTS JAPAN AIRLINES
- Japan Airlines (JAL) on Monday cut its full-year forecast to a record operating
loss of 420 billion yen ($4 billion) as a fresh surge in coronavirus infections dampened
expectations for a recovery in domestic travel.
- Like bigger local rival ANA Holdings, JAL saw a demand recovery on domestic
routes towards the end of last year helped by government subsidies for air tickets and hotels. A
resurgence in coronavirus cases, however, forced authorities to halt a tourism campaign and
reinstate lockdowns in major cities.
SINGAPORE CASH DEALS
- Three gasoil deals, one jet fuel trade
OTHER NEWS
- Oil prices rose on Monday after a weak start, adding to the gains of the last three
months, although patchy coronavirus vaccine rollouts, new infections and the discovery of new
variants are casting a shadow over the demand outlook.
ASSESSMENTS
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC
Spot Gas Oil 0.5% 59.48 0.66 1.12 58.82
GO 0.5 Diff -1.61 0.06 -3.59 -1.67
Spot Gas Oil 0.25% 59.58 0.66 1.12 58.92
GO 0.25 Diff -1.51 0.06 -3.82 -1.57
Spot Gas Oil 0.05% 59.85 0.66 1.12 59.19
GO 0.05 Diff -1.24 0.06 -4.62 -1.3
Spot Gas Oil 0.001% 61.06 0.66 1.09 60.4
GO 0.001 Diff -0.03 0.06 -66.67 -0.09
Spot Jet/Kero 58.59 0.72 1.24 57.87
Jet/Kero Diff -0.16 0.05 -23.81 -0.21
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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