Tuesday, 09 March 2021 | 13:24
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Asia Distillates-Gasoil cash premiums dip, cracks ease from multi-month high

Tuesday, 23 February 2021 | 01:00

Asia’s cash premiums for 10 ppm gasoil inched lower on Monday, due to sluggish buying interests for physical cargoes, while refining margins for the industrial fuel dropped on firmer feedstock crude prices.

Cash differentials for gasoil with 10 ppm sulphur content were at a premium of 2 cents a barrel to Singapore quotes, compared with a 3 cent premium on Friday.

The overall gasoil demand in Asia, however, is expected to strengthen gradually as countries ease coronavirus-related restrictions, while seasonal refinery maintenance in coming months would keep supplies tight, trade sources said.

China’s diesel exports this month are expected to exceed January’s 1.56 million tonnes as sluggish domestic demand during the Lunar New Year break this year has resulted in high stockpiles, according to Refinitiv oil research assessments.

But diesel exports from India dropped about 12% in January from the preceding month, government data showed on Friday. With manufacturing activities and transportation demand picking up, India’s diesel exports would likely remain limited in the short-term, market watchers said.

Refining margins, also known as cracks, for 10 ppm gasoil dropped to $8.36 per barrel over Dubai crude during Asian trading hours. They hit a more than 10-month high of $8.48 a barrel on Friday.

TENDERS
– India’s Mangalore Refinery and Petrochemicals Ltd (MRPL) was offering 40,000 tonnes of jet fuel for loading over March 26-28 from the port of New Mangalore. The tender closes on Feb. 24 and has a same-day validity.

SINGAPORE CASH DEALS
– No gasoil deals, no jet fuel trades

OTHER NEWS
– Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder of the tight supply situation, just as demand recovers from the depths of the COVID-19 pandemic.

– Australia’s natural gas pipeline owners are working to future proof their A$75 billion ($59 billion) in assets amid a global push towards clean energy, running tests to blend hydrogen with gas and produce green methane to replace the fossil fuel.
Source: Reuters (Reporting by Koustav Samanta; Editing by Sherry Jacob-Phillips)

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