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Asia Distillates-Gasoil cracks linger near multi-month peak

    SINGAPORE, Feb 4 (Reuters) - Asian gasoil cracks dipped on Thursday, but remained within
close sight of a multi-month high touched in the previous session, buoyed by reviving industrial
demand and expectations of a tighter market in coming months as regional refineries enter spring
turnaround season.
    Refining margins, also known as cracks, for 10 ppm gasoil slipped to $6.37 a
barrel over Dubai crude during Asian trading hours, weighed down by firmer feedstock crude
prices. The cracks hit a more than six-month high of $6.61 per barrel on Wednesday.
    "We expect most economies in Asia-Pacific to regain their growth trajectory and Q1 2021
demand to strengthen versus the previous quarter," said Max van der Velden, principal analyst at
consultancy Wood Mackenzie.
    "We expect that the combination of the vaccine rollouts and countries being better prepared
against new waves of the virus would enable markets to rebound quickly from any lockdowns," he
added.
    Cash differentials for gasoil with 10 ppm sulphur content GO10-SIN-DIF flipped back to a
narrow discount of 2 cents a barrel to Singapore quotes, compared with a 1-cent premium a day
earlier.
    
    INVENTORIES
    - Singapore's middle distillate inventories rose 0.5% to 14.2 million barrels in the week to
Feb. 3, according to Enterprise Singapore data.
    - Weekly Singapore middle distillate inventories have averaged 14.5 million barrels so far
this year, compared with an average of 13.9 million barrels in 2020, Reuters calculations
showed. This week's stocks were 32.4% higher than a year ago.
    - U.S. distillate stockpiles fell by 9,000 barrels in the week to Jan. 29, the Energy
Information Administration said on Wednesday, compared with analysts' expectations in a Reuters
poll for a 429,000-barrel drop.
    
    SINGAPORE CASH DEALS
    - One gasoil deal, no jet fuel trades
    
    OTHER NEWS
    - India's oil minister Dharmendra Pradhan warned on Thursday that rising oil prices could
hurt global economic recovery in the aftermath of the COVID-19 pandemic that caused most
economies to shrink last year.
    - Oil prices extended gains on Thursday after the OPEC+ alliance of major producers stuck to
a reduced output policy, and as crude stockpiles in the United States fell to their lowest
levels since March last year.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                         
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close   RIC
 Spot Gas Oil 0.5%                62.89     0.64       1.03        62.25  GO-SIN
 GO 0.5 Diff                      -1.55     0.07      -4.32        -1.62  GO-SIN-DIF
 Spot Gas Oil 0.25%               62.99     0.64       1.03        62.35  GO25-SIN
 GO 0.25 Diff                     -1.45     0.07      -4.61        -1.52  GO25-SIN-DIF
 Spot Gas Oil 0.05%               63.26     0.64       1.02        62.62  GO005-SIN
 GO 0.05 Diff                     -1.18     0.07      -5.60        -1.25  GO005-SIN-DIF
 Spot Gas Oil 0.001%              64.42     0.54       0.85        63.88  GO10-SIN
 GO 0.001 Diff                    -0.02    -0.03    -300.00         0.01  GO10-SIN-DIF
 Spot Jet/Kero                    61.81     0.58       0.95        61.23  JET-SIN
 Jet/Kero Diff                    -0.21     -0.1      90.91        -0.11  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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