Asia Distillates-Gasoil refining profits surge to over 6-month high

    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
    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 GO10-SIN-DIF was at a discount of 5 cents a barrel to
Singapore quotes, compared with a 4-cent discount on Friday.
    - 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.
    - No gasoil deals, no jet fuel trades
    - Oil prices rose on Monday to their highest in just over a year, with Brent futures nudging
past $60 a barrel, boosted by supply cuts among key producers and hopes for further U.S.
economic stimulus measures to boost demand.
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                64.62     0.91       1.43       63.71  GO-SIN
 GO 0.5 Diff                      -1.61    -0.01       0.62        -1.6  GO-SIN-DIF
 Spot Gas Oil 0.25%               64.72     0.91       1.43       63.81  GO25-SIN
 GO 0.25 Diff                     -1.51    -0.01       0.67        -1.5  GO25-SIN-DIF
 Spot Gas Oil 0.05%               64.99     0.91       1.42       64.08  GO005-SIN
 GO 0.05 Diff                     -1.24    -0.01       0.81       -1.23  GO005-SIN-DIF
 Spot Gas Oil 0.001%              66.18     0.91       1.39       65.27  GO10-SIN
 GO 0.001 Diff                    -0.05    -0.01      25.00       -0.04  GO10-SIN-DIF
 Spot Jet/Kero                    63.38     0.61       0.97       62.77  JET-SIN
 Jet/Kero Diff                    -0.16    -0.01       6.67       -0.15  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 Vinay Dwivedi)