SINGAPORE: Cash differentials of benchmark 500ppm gasoil extended gains on Friday, climbing to a 2016 high, boosted by pockets of renewed regional demand and tightening supply over the near term, industry sources said.
Cash premiums of the 500ppm gasoil rose 2 cents a barrel on Friday to 24 cents above Singapore quotes, its highest since Dec. 11. Since the start of the week gasoil premiums have risen from a discount of 4 cents below Singapore quotes. <GO005-SIN-DIF>
While the front month 500ppm gasoil cracks against Dubai crude fell below $10 to $9.94 a barrel on Friday, the crack ended the week higher from $9.52 on Monday.
In Jet fuel, cash discounts narrowed by 2 cents on Friday to minus 47 cents a barrel below Singapore quotes, halting a week of declines for differentials of the aviation fuel fall from minus 32 cents a barrel on Monday.
Cash differentials for the fuel have been weighed down by expectations that supplies will increase as regional refineries resume production after maintenance, industry sources said.
Front-month cracks of the jet fuel also ended the week higher at $10.57 a barrel, up 40 cents from Monday.
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