SINGAPORE: Asia's gasoil cash differential for the benchmark 500ppm grade flipped to a discount on Thursday as the near-term demand and supply outlook offset a decline in weekly Singapore onshore inventories, traders said.
"Sentiment is weakening now because of the slower regional demand seen from the monsoon season and to some extent heavier supplies as refinery turnarounds are completed," one Singapore-based trader said.
Bidding interest for benchmark 500ppm gasoil was relatively weaker in the cash markets on Thursday.
In the Platts window only three bids were reported for the fuel against nine offers, industry sources said.
The lacklustre interest sent cash differentials of 500ppm gasoil to a discount for the first time since May 25, settling 8 cents lower from the previous close at 1 cent below Singapore quotes.Gasoil cracks for the 500ppm grade also edged 12 cents lower on Thursday to $12.03 a barrel but held above the $12 level for the fourth consecutive session.
Singapore onshore middle distillate inventories fell by 539,000 barrels in the week to June 22, a three-week low, the latest data from International Enterprise showed.
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