Asia Distillates-Gasoil cracks weaken on concerns for rising supplies

    SINGAPORE, April 28 (Reuters) - Asian refining margins for 10 ppm gasoil dropped on
Wednesday, weighed down by concerns that recovery in demand would be outpaced by near-term
supplies as India ramps up exports and regional refineries, undergoing seasonal turnarounds,
resume operations.
    Refining margins or cracks for 10 ppm gasoil fell 9 cents to $6.83 per barrel
over Dubai crude during Asian trading hours, their lowest since April 22.
    "The surge in Indian (COVID-19) infections poses a stark downside risk to short-term demand,
forcing diesel exports higher as refiners remain reluctant to cut runs," analysts at consultancy
Energy Aspects said in a monthly note.
    "Indian diesel exports could exceed 700,000 barrels per day in May, ahead of the typically
high exports seen over the monsoon season."
     India's second wave of infections has seen at least 300,000 people test positive each day
for the past week, overwhelming healthcare facilities and crematoriums and fuelling an
increasingly urgent international response.
    Cash differentials for gasoil with 10 ppm sulphur content GO10-SIN-DIF, which have
consistently stayed in a negative territory over the last two months, were at a discount of 20
cents a barrel to Singapore quotes on Wednesday.
    - Middle-distillate inventories in the Fujairah Oil Industry Zone dropped 8.8% to 2.9
million barrels in the week ended April 26, data via S&P Global Platts showed.
    - The weekly stocks in Fujairah have averaged 3.9 million barrels so far this year, compared
with 4.2 million barrels in 2020, Reuters calculations showed.
    - U.S. distillate fuel inventories, which include diesel and heating oil, fell by 2.4
million barrels in the week to April 23, according to two market sources, citing American
Petroleum Institute (API) figures.
    - India's Mangalore Refinery and Petrochemicals Ltd (MRPL) was offering 65,000 tonnes of
10ppm gasoil for May 20-22 loading from the port of New Mangalore. The tender closes on May 4
and has a same-day validity.
    - India's Nayara Energy was offering up to 70,000 tonnes of diesel for loading over May
27-31, a broker source said.
    - Five gasoil deals, no jet fuel trades
    - Clean-up crews worked on Wednesday to contain an oil spill in the Yellow Sea near the
Chinese port city of Qingdao, a day after a collision between a tanker carrying around a million
barrels of bitumen mix and a bulk vessel in thick fog.
 CASH ($/T)              ASIA CLOSE       Prev Close  RIC
 Spot Gas Oil 0.5%                 68.54        68.3  GO-SIN
 GO 0.5 Diff                       -1.85       -1.86  GO-SIN-DIF
 Spot Gas Oil 0.25%                68.70       68.46  GO25-SIN
 GO 0.25 Diff                      -1.69        -1.7  GO25-SIN-DIF
 Spot Gas Oil 0.05%                68.87       68.71  GO005-SIN
 GO 0.05 Diff                      -1.52       -1.45  GO005-SIN-DIF
 Spot Gas Oil 0.001%               70.20       69.91  GO10-SIN
 GO 0.001 Diff                     -0.20       -0.25  GO10-SIN-DIF
 Spot Jet/Kero                     68.80       68.52  JET-SIN
 Jet/Kero Diff                     -0.19       -0.18  JET-SIN-DIF 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 Rashmi Aich)