SINGAPORE, Feb 8 (Reuters) - Asian refining margins for 10 ppm gasoil rose to their highest
level in over six months on Monday, supported by a steady demand in India and China, while
upcoming spring turnarounds at regional refineries are expected to tighten supplies.
Refining margins, also known as cracks, for 10 ppm gasoil rose 21 cents to
$6.84 a barrel over Dubai crude during Asian trading hours, a level not seen since July 30.
India's diesel year-on-year sales in January fell at their slowest pace in three months,
indicating a gradual recovery in industrial growth.
Meanwhile, China's efforts to keep people from travelling for Lunar New Year are not
expected to derail its post-pandemic recovery, as migrant workers that have stayed put in major
cities would allow industrial activities to resume quickly after the holidays, boosting diesel
demand.
Going forward, the overall strength in gasoil markets would largely be dependent on the pace
and shape of global economic recoveries and the distribution of COVID-19 vaccines, said Peter
Lee, senior oil and gas analyst at Fitch Solutions.
"The timing of vaccinations will not be even across markets. However, most markets look to
be targeting sometime around end-Q1 to mid-Q2 as the time to start first batch of vaccinations,"
Lee said, adding that any delays or issues with the vaccines would prove "highly detrimental" to
the pace of recovery.
Gasoil with 10 ppm sulphur content was at a discount of 5 cents a barrel to
Singapore quotes, compared with a 4-cent discount on Friday.
HEDGE FUNDS BET ON OIL'S "BIG COMEBACK"
- Hedge funds are turning bullish on oil once again, betting the pandemic and investors'
environmental focus has severely damaged companies' ability to ramp up production.
- Such limitations on supply would push prices to multi-year highs and keep them there for
two years or more, several hedge funds said.
SINGAPORE CASH DEALS
- No gasoil deals, no jet fuel trades
OTHER NEWS
- Oil prices rose on Monday to their highest in just over a year, with Brent futures nudging
past $60 a barrel, boosted by supply cuts among key producers and hopes for further U.S.
economic stimulus measures to boost demand.
ASSESSMENTS
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC
Spot Gas Oil 0.5% 64.62 0.91 1.43 63.71
GO 0.5 Diff -1.61 -0.01 0.62 -1.6
Spot Gas Oil 0.25% 64.72 0.91 1.43 63.81
GO 0.25 Diff -1.51 -0.01 0.67 -1.5
Spot Gas Oil 0.05% 64.99 0.91 1.42 64.08
GO 0.05 Diff -1.24 -0.01 0.81 -1.23
Spot Gas Oil 0.001% 66.18 0.91 1.39 65.27
GO 0.001 Diff -0.05 -0.01 25.00 -0.04
Spot Jet/Kero 63.38 0.61 0.97 62.77
Jet/Kero Diff -0.16 -0.01 6.67 -0.15
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 Vinay Dwivedi)
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