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Asia Distillates-Gasoil cracks dip, cash discounts narrow

    SINGAPORE, April 7 (Reuters) - Asian refining margins for 10 ppm gasoil slipped on
Wednesday, while cash differentials for the industrial fuel grade strengthened to their smallest
discounts in more than a month.
    Refining margins, also known as cracks, for 10 ppm gasoil dipped 12 cents to
$6.56 per barrel over Dubai crude during Asian trading hours, but stayed within close sight of a
near four-week high touched in the previous session.
    Cracks for the benchmark gasoil grade in Singapore, which have gained 38% so far this month,
were still more than 40% lower than their five-year seasonal average for this time of the year,
Refinitiv Eikon data showed.
    Cash discounts for 10 ppm gasoil GO10-SIN-DIF narrowed to 4 cents per barrel to Singapore
quotes, the smallest discounts since March 1. They were at a discount of 9 cents per barrel on
Tuesday.
    
    JET FUEL DEMAND WARMING UP
    - Jet fuel demand is picking up, according to a senior refining executive, which could give
refiners some hope after the global pandemic boosted distillate inventories and sank margins.

    - "Jet fuel demand numbers are starting to improve and show signs of life, allowing refiners
to drop less jet into diesel which will eventually provide well-needed relief on distillate
stock," said Joe Israel, chief executive officer of U.S. based refiner Par Pacific.
    
    INVENTORIES
    - Middle-distillate inventories in the Fujairah Oil Industry Zone dropped 5% to 3.3 million
barrels in the week ended April 5, data via S&P Global Platts showed.
    - The weekly stocks in Fujairah have averaged 4.1 million barrels so far this year, Reuters
calculations showed.
    - U.S. distillate fuel inventories, which include diesel and heating oil, rose by 2.8
million barrels in the week to April 2, according to three market sources, citing American
Petroleum Institute (API) figures.

    SINGAPORE CASH DEALS
    - Four gasoil deals
    - Vitol sold two cargoes of 10 ppm gasoil to BP and one cargo to Unipec, while PetroChina
sold one cargo to Unipec
    
    OTHER NEWS
    -  Iran and world powers held what they described as "constructive" talks on Tuesday and
agreed to form working groups to discuss the sanctions Washington might lift and the nuclear
curbs Tehran might observe as they try to revive the 2015 nuclear deal.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               65.03    -0.58      -0.88       65.61  GO-SIN
 GO 0.5 Diff                     -1.53     0.01      -0.65       -1.54  GO-SIN-DIF
 Spot Gas Oil 0.25%               65.2    -0.58      -0.88       65.78  GO25-SIN
 GO 0.25 Diff                    -1.36     0.01      -0.73       -1.37  GO25-SIN-DIF
 Spot Gas Oil 0.05%              65.53    -0.58      -0.88       66.11  GO005-SIN
 GO 0.05 Diff                    -1.03     0.01      -0.96       -1.04  GO005-SIN-DIF
 Spot Gas Oil 0.001%             66.51    -0.55      -0.82       67.06  GO10-SIN
 GO 0.001 Diff                   -0.04     0.05     -55.56       -0.09  GO10-SIN-DIF
 Spot Jet/Kero                   63.28    -0.59      -0.92       63.87  JET-SIN
 Jet/Kero Diff                   -0.63    -0.02       3.28       -0.61  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 Devika Syamnath)
  
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