News: AIY Asia Distillates-Gasoil cracks, cash differentials drop on subdued demand

SINGAPORE, Dec 2 (Reuters) - Asian refining margins for 10 ppm gasoil dropped on Wednesday, weighed down by feeble demand and expectations for a rise in near-term supplies.

Refining margins, also known as cracks, for 10 ppm gasoil GO10SGCKMc1 fell to $5.27 a barrel over Dubai crude during Asian trade, down from a more than three-month high of $5.72 per barrel a day earlier.

Cracks for the benchmark gasoil grade in Singapore have climbed about 5% in the last two weeks, but a Singapore-based trader said they might come under pressure due to ample availability of supplies relative to current demand.

The Dec/Jan time spread for 10 ppm gasoil GO10SGSPDMc0 widened its contango structure by 2 cents on Wednesday to trade at a discount of 22 cents per barrel, Refinitiv Eikon data showed.

Cash discounts for gasoil with 10 ppm sulphur content GO10-SIN-DIF widened for a second consecutive session to 23 cents a barrel to Singapore quotes on Wednesday, compared with a 21-cent discount on Tuesday.

INVENTORIES

- Middle-distillate inventories in the Fujairah Oil Industry Zone dropped 12.8% to 5.4 million barrels in the week ended Nov. 30, data via S&P Global Platts showed.

- The weekly stocks in Fujairah have averaged 4.1 million barrels so far in 2020, compared with the weekly average of 2.4 million barrels in 2019, Reuters calculations showed.

- U.S. distillate stockpiles, which include diesel and heating oil, rose by 334,000 barrels in the week to Nov. 27, compared with expectations for a draw of 209,000 barrels, data from industry group the American Petroleum Institute (API) showed on Tuesday.

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

OTHER NEWS - Oil prices were steady on Wednesday as the market awaits a pact from producers on output and Britain became the first country to approve a COVID-19 vaccine for use, boosting hopes for a future recovery in oil demand.

ASSESSMENTS MID-DISTILLATES

 CASH ($/T)			  ASIA CLOSE	   Change   % Change   Prev Close   RIC 
 Spot Gas Oil 0.5%				 50.50	-0.94	  -1.83		51.44   GO-SIN  
 GO 0.5 Diff					   -1.32	-0.01	   0.76		-1.31   GO-SIN-DIF  
 Spot Gas Oil 0.25%				50.80	-0.94	  -1.82		51.74   GO25-SIN  
 GO 0.25 Diff					  -1.02	-0.01	   0.99		-1.01   GO25-SIN-DIF  
 Spot Gas Oil 0.05%				50.95	-0.94	  -1.81		51.89   GO005-SIN  
 GO 0.05 Diff					  -0.87	-0.01	   1.16		-0.86   GO005-SIN-DIF  
 Spot Gas Oil 0.001%			   51.59	-0.95	  -1.81		52.54   GO10-SIN  
 GO 0.001 Diff					 -0.23	-0.02	   9.52		-0.21   GO10-SIN-DIF  
 Spot Jet/Kero					 50.17	-0.72	  -1.41		50.89   JET-SIN  
 Jet/Kero Diff					 -0.25	 0.02	  -7.41		-0.27   JET-SIN-DIF  
																							 
 For a list of derivatives prices, including margins, please double click					

the RICs below. Brent M1 BRENTSGMc1 Gasoil M1 GOSGSWMc1 Gasoil M1/M2 GOSGSPDMc1 Gasoil M2 GOSGSWMc2 Regrade M1 JETREGSGMc1 Regrade M2 JETREGSGMc2 Jet M1 JETSGSWMc1 Jet M1/M2 JETSGSPDMc1 Jet M2 JETSGSWMc2 Gasoil 500ppm-Dubai GOSGCKMc1 Cracks M1 Gasoil 500ppm-Dubai GOSGCKMc2 Cracks M2 Jet Cracks M1 JETSGCKMc1 Jet Cracks M2 JETSGCKMc2 East-West M1 LGOAEFSMc1 East-West M2 LGOAEFSMc2 LGO M1 LGOAMc1 LGO M1/M2 LGOASPDMc1 LGO M2 LGOAMc2 Crack LGO-Brent M1 LGOACKMc1 Crack LGO-Brent M2 LGOACKMc2